Deputy Minister of Finance, Thomas Ampem Nyarko, has refuted claims by the Minority in Parliament that the government is misrepresenting the purpose of a newly approved $360 million financing agreement with the World Bank’s International Development Association (IDA).
According to the deputy minister, the government has said the decision to channel the funds into clearing arrears, including road contractor payments, aligns with its fiscal consolidation strategy and is part of a broader commitment to restoring credibility and liquidity in the economy.
Related Stories
The agreement, approved by Parliament on Tuesday, July 1, forms part of the Second Resilient Recovery Development Policy Financing and is intended to support Ghana’s 2025 national budget.
However, Minority MPs have accused the government of using vague language to conceal the facility’s true nature.
During debate in Parliament, Kojo Oppong Nkrumah, Ranking Member on the Committee on Economy and Development, alleged that the government was disguising the transaction and misleading the public by suggesting it was not a loan.
But in a response on the Citi Breakfast Show on Wednesday, July 2, Nyarko described those claims as misguided and inaccurate.
Oppong Nkrumah is trying to align President Mahama’s decision to use the $360 million World Bank facility to pay contractors and suggest that it was the original intention. That is not true,” he said.
Nyarko clarified that the facility is general budget support, not a ring-fenced loan designated for contractor payments or any single use.
It is not to tie the hands of the government to utilise the proceeds for any specific item. It comes into the pools of revenue for the government, and it decides what to use the money for,” he explained.
He further noted that Ghana received the first tranche of $300 million in 2024, and the recently approved $360 million is part of the second tranche under the same World Bank-backed programme.
The government took a decision in Cabinet that the total amount should be used for the payment of arrears. That is what we communicated to Parliament,” he added.
