Ranking Member on Parliament's Energy Committee, John Jinapor

Minority in Parliament has vowed to resist the government’s attempt to have Parliament approve a 1 billion dollar syndicated loan currently before the House.

The Finance Ministry is seeking Parliament’s approval for a 750 million dollar loan facility agreement between AfreximBank and a 250 million dollar loan agreement from a syndication of banks to finance Capital and Growth-related expenditures in the 2022 budget.

According to JoyNews’ Parliamentary Correspondent, Kwaku Asante, the loan agreement has been scheduled to be debated in the House on Friday per the provisional order paper.

Speaking exclusively to JoyNews’ Parliamentary Correspondent on Thursday, member of the Finance Committee of Parliament, John Jinapor said the Finance Minister must withdraw the loan request before the House.

He called on both caucuses of the House to reject the loan agreement currently before Parliament.

“I think that both the Majority and Minority must do the needful and ask the Finance Minister to withdraw this request. We must go through all the processes, look at the true state of the economy why we are in this mess, what we ought to be borrowing and exactly where we are applying those funds.

“Given the current circumstance and what they [Finance Ministry] has given, it’s so opaque, not transparent and does not stand the test of time and I hope MPs from both sides will put the nation first,” he said.

According to him, if the loan is approved, the government will “pay almost 50 million dollars as insurance and then pay about 1.75 million dollars as arrangement or agency fee.”

He described the term of the loan facility as “terrible” and “inimical” and must be withdrawn.

Pull the brakes on $1b syndicated loan agreement – John Jinapor tells Finance Ministry
Member of the Finance Committee of Parliament, John Jinapor

On Friday, John Mahama while speaking at the launch of a think tank, Think Progress Ghana, urged Minority MPs to reject this loan agreement.

“Even worse is the fact that this government has collateralized almost all revenue streams and is seeking to collateralize more, including our gold royalties under the dubious Agyapa Deal.

“In view of the above, we in the NDC cannot lend support to the 1 billion syndicated loan agreement. We wish to serve notice going forward that the NDC in Parliament will not support any further non-concessionary borrowing or loans that are not project-specific,” he said.

He said the National Democratic Congress (NDC) will not take part in any action that can cause the destruction of the country.

Mr. John Jinapor told JoyNews’ Parliamentary Correspondent that his side will fully comply with the directive from their leader.