Stalemate in Parliament delayed $300m World Bank funding for Ghana – Finance Minister

Finance Minister, Dr. Mohammed Amin Adam, says Ghana has missed out on a $300 million World Bank disbursement due to Parliament’s inability to pass critical legislation.

Speaking at the Ministry’s monthly economic press briefing on Tuesday, December 3, he linked the legislative impasse to the ongoing vacant seat saga that has led Speaker Alban Bagbin to suspend sittings until after the 2024 General Elections.

Dr. Amin Adam has expressed worry about the impact of the Speaker’s decision on the economy.

“We should have passed some legislations that should have qualified us for $300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed because parliament has not been working as it should.

“This is just one example of how the impasse in the house has affected government business”, Finance Minister, said.

Regarding the debt restructuring, the Finance Minister expressed confidence in the government’s ability to meet all obligations within the next two years, following the country’s improving economic outlook.

“I do not have any doubt that in a year or two, those who have lost money will recover their money,” Dr. Adam said.

On the international front, Dr. Adam noted the government’s commitment to honoring Eurobond payments. Following the successful settlement of $520 million in October 2024, he disclosed that preparations are advanced to pay off the next coupon due in January 2025.

“Our next coupon payment will be 2nd January; we are ready. We are not going to default; we are ready,” he declared.

Dr. Adam also painted a positive picture of Ghana’s economic trajectory, emphasizing the significant growth in the economy’s nominal size over the years.

“It is instructive to mention that, while the nominal size of the Ghanaian economy was 56 billion USD in 2016, by the end of 2023, the nominal size increased to 76 billion USD, representing an increase of 20 billion USD in seven years,” he highlighted.

He further hinted that the economy is set to expand even further by the close of 2024 when official data becomes available.

By Bismark Awoosah,3Business

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