GRi BEF News Ghana
07 - 09 – 2001
HIPC to bring 2.2 billion in 20 years
Increase
in prices of toiletries and beverages
Accra (Greater Accra) 07 September 2001 - Annual benefit of 250 million dollars will accrue to Ghana under HIPC between 2002 and 2003 when the country is expected to reach completion point, rising gradually to 280 million dollars in 2004.
Dr Mahamadou Bawumia, a member of HIPC initiative task force who announced this on Friday said an estimated 2.2 billion dollars would accrue to the country over the next 20 years.
Dr Bawumia told participants at a HIPC sensitisation workshop in Accra that the benefits flow would, however, depend on the country's ability to negotiate for relief, especially from the Paris Club of creditors.
It is also dependent on how consistent the government would pursue its macro-economic policies and ensure fiscal discipline to get the International Monetary Fund's programmes back on track.
The seminar, which attracted participants from civil society, the private sector, banking institutions and the media, examined the preparations of the task force to ensure that the government got the best terms under the negotiations.
Dr Bawumia said a country's declaration of HIPC is in itself not enough to allow the flow of benefits, adding that it takes consistent and pragmatic policies and good negotiating skills to achieve that.
He called on all stakeholders to contribute more to the work ahead for the country to derive the maximum benefits from the initiative and from the creditors.
Dr Bawumia said to achieve this would demand limiting the government’s borrowings to those with a minimum grant of 45 per cent, analysing on a regular basis the impact of debt relief and new financing to avoid falling back into the debt trap and mobilising higher levels of grants and very cheap loans.
He said the team has re-examined the country's eligibility and expected relief each creditor would provide. It has also taken account of factors such as high crude oil prices, declining income from exports, and government increased borrowing from domestic sources, which had the potential to derail the government’s economic policies.
Dr Bawumia said should the economy suffer any serious shock, the country's debt could relapse into unsustainable levels.
The Deputy Minister of Finance, Mrs Grace Coleman said HIPC
is not the only option the government was looking at to reduce its debt. It is
developing debt management capacity at the Ministry of Finance, Bank of Ghana
and the Controller and Accountant General's Department to ensure that effective
institutional arrangements exist to keep track of government fiscal and
macro-economic policy.
The Minister said savings from HIPC would be put in
financing rural development such as water, sanitation, health and education to
remove the strain on government's budget and free resources to other sectors.
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Koforidua
(Eastern Region) 07 September 2001 - Residents in the New Juabeng municipality
have expressed concern about the recent increase in the prices of some products
of LEVER Brothers and NESTLE Ghana Ltd.
A survey by
the Ghana News Agency on Wednesday to ascertain the reaction of both retailers
and consumers at the Koforidua market indicated that most consumers decried the
unannounced increases.
Toiletries
of LEVER Brothers affected include Bar Key Soap, which is now retailed at
94,400 cedis per carton and 5,900 cedis for a bar as against its old price of
88,000 cedis a carton and 5,500 cedis a bar.
Wrapped Key
Soap, which was retailed at 67,200 cedis a box and 1,600 cedis for one is now
being sold at 79,200 cedis and 1,650 cedis respectively.
Also
affected is Brilliant soap with the blue one being retailed at 102,000 cedis a
box and 1,700 cedis for one, while white brilliant is being retailed for
105,000 cedis a box and 1,750 cedis for one.
The retail
price for Blue Brilliant was 96,000 cedis a box and 1,600 cedis for one while
White Brilliant was 99,000 cedis a box and 1,650 cedis for one.
Sunlight
Dishwasher (liquid soap) has increased from 96,000 cedis to 103,200 cedis for
the 400-ML container and from 8,000 cedis per bottle to 8,600 cedis. The 750-ML
container has increased from a retail price of 150,000 cedis to 158,400 cedis.
One bottle now costs 13,200 cedis as against 12,500 cedis.
The survey
discovered that the increase in the LEVER products took effect from August 25,
this year. NESTLE Ghana Ltd. also increased the prices of some of its beverages
such as Ideal Milk, Carnation Milk and Chocolim (500 and 100ml) with effect
from Monday September 3.
GRi../
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