Budget to be reviewed in Mid-November - Osafo-Maafo
Ghana's foreign debt is 5.9 billion dollars - Osafo-Maafo
Accra (Greater Accra) 03 November 2001-Mr Yaw Osafo-Maafo, Minister of Finance, on Friday said a budgetary statement that would review the current budget would be presented to Parliament in mid-November.
"I will review the performance of the economy from January to June and at the end of November present to this august House estimates of 2002 budget. I intend to follow it up with the actual budget for 2002 in February, 2002."
Mr Osafo-Maafo was answering an urgent question in Parliament asked by Mr Norbert Awulley, NDC-Builsa South. He asked the Minister when he would present the "final budget statement for the year ending December 2001, since the one approved by Parliament in March was an interim one".
The Minister did not indicate whether he would ask for extra money from the House. In another development, the House debated the Immigration Regulation 2001, Legislative Instrument 1691.
It seeks to revise the procedures on visa to Ghana acquisition while introducing the clauses for application for right of abode, indefinite residence for foreign spouses into the immigration regime.
It becomes law automatically after 21 sitting days after the day it was tabled in Parliament.
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Accra (Greater Accra) 03 November 2001-Ghana owed its foreign debtors 5.9 billion as at January 2001, Mr Yaw Osafo Maafo, Minister of Finance told Parliament on Friday.
"The external stock of debt stood at 198.48 million at the end of 1981 and by the year 2000, rose to 5.9 billion dollars, This represents a 2,872.6 per cent increase from the 1981 figure.
The Minister was answering a parliamentary question posed by Mr Francis Aggery Agbotse -NDC) Ho West.
The member had asked for the quantum of the national debt as at the end of December 1981, the total long-term, medium-term and short-term debts contracted between 1982 and December 2000 on year-to-year basis and the terms of payment of these debts.
Mr Osafo-Maafo said in 1982, Ghana contracted loans to the tune of 25.1 million dollars rising to 335.2 million dollars in 1985 and further up to 598 million dollars in 1990.
" This, however, fell sharply to about 291.4 million dollars in 1991 but rose again to 541.8 million dollars in 1992. It went down to about 437.6 million dolars in 1996 and declined further to 206.8 million dollars in 1997."
He said though the loans contracted showed a declining trend, 1999 recorded a total of 348.7 million dollars before falling to 68.9 million dollars in 2000.
Mr Osafo-Maafo said the increasing trend in these long tern external loan commitment was a result of the Economic Recovery Programme (ERP) the then government embarked upon in 1983 and the Structural Adjustment Programmes (SAP) that followed in 1987.
" The period under review brought in both programme loans to support the budget and project loans to most sectors, mainly roads, energy, agriculture, health and education."
He said loans contracted over the period were mainly from multilateral sources like the International Development Association (IDA), African Development Fund among other institutions.
"With regards to loans contracted from bilateral sources, Japan and Germany are our major creditors." Mr Osafo-Maafo said out of the total long-term loan amount, IDA loans represents 49.4 per cent, ADB group 8.3. Japanese loans 15 per cent and Germany, 4.7 per cent.
On medium term loans, he said 18.1 million dollars was contracted in 1982 increasing to 220 million dollars in 1985. He said it rose again to 321.6 million dollars in 1987 adding that it, however, showed a declining trend after 1987 with 1990 commitments around 164.3 million dollars.
Mr Osafo-Maafo said: "It rose again to 300 million in 1995 and 352.3 million in 1996. For 1997 total loans contracted fell sharply to 95.8 million but went up again in 1999 to about 250.7 million dollars declining again to 50 million dollars in 2000."
He said Banks like Societe General, Midland Bank Plc, European Investment Bank and Standard Chartered Bank (UK) provided the medium term loans.
Mr Osafo-Maafo said government contracted short-term loans to the tune of 40 million dollars 1995. "The amount rose to 100 million dollars in 1997 but fell to 70 million in 1998 and further down to 40 million dollars for 1999 and 2000.
He said:" The average rate of interest for the period was 6.28 per cent. The main creditors were Union Bank of Switzerland (UBS) and Bank for International Settlement (BIS)."
According to the Finance Minister, debt service payment on long-term and medium-term debt increased over the years from 7 million dollars in 1982 to 123 million dollars in 1987.
"It further increased to about 242 million in 1994. It peaked around 454 million dollars in 1998 and declined to about 342 million dollars in 2000.
Mr Osafo-Maafo said 4.3 billion dollars representing 73 per cent of the total amount was for project funding adding that 21.5 per cent of these projects were still on going.
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