The soon to be established National Development Bank Ghana (DBG) will pay back the 170 million euros facility from the European Investment Bank for its establishment in 15 years.

Answering questions on the creation of DBG at a Press conference in Accra, Finance Minister, Ken Ofori-Atta said the loan comes with a 5-year moratorium and 0.5% interest.

“This is a facility with one of the lowest interest rates of just half a zero percent with a maturity period of 15 to 20 years with a five years moratorium given to us.”

“The essence of this is to ensure that institutions are able to borrow on their own credit history and balance sheet without further burden on the central government” he said.

The Ministry of Finance and the European Investment Bank have signed an agreement for the provision of a €170 million facility for the establishment of the new bank.

The agreement was signed when President Akufo-Addo held a meeting with the President of the European Investment Bank, Dr. Werner Hoyer, as part of his official visit to Belgium.

The €170 million facility, according to Dr. Hoyer, is the largest facility provided by the European Investment Bank for the establishment of a development bank in Africa or for any other project on the continent.