Govt to realize $750m from $3bn Chinese loan facility this year
- Created on Tuesday, 24 July 2012 07:53
The country would realize 750 million dollar out of the 3 billion dollar facility from the Chinese Development Bank this year.
This was contained in a letter signed by the Minister of Finance Dr. Kwabena and Central Bank Governor, Kwesi Amissah-Arthur to the IMF Managing Director, Christine Lagarde last month.
The letter to the Fund, forms part of requirements for some 581 dollars government is seeking from the IMF under its Extended Credit Facility Program for Ghana.
The 33-page letter outlines policies that government intends to embark on this year and some developments from last year. The letter also indicated the parliament has passed nine out of the twelve subsidiary agreements covering infrastructure development under the facility.
About 850 million dollars will be advanced towards the construction of a plant in the western region to process gas from the Jubilee field. The remaining 150 million dollars will go towards developing an ICT surveillance infrastructure for the project.
Meanwhile, a source close to the finance minister tells Joy Business, disbursement would be spread over a three to five year period.
Government in the same letter indicated that it will take steps to gradually remove subsidies on petroleum products in the near future. This was after it spent some 228 million Ghana cedis on subsidizing the fuel from January to May this year.
Revenue from the VAT is also expected to decline by 107 million Ghana cedis this year as a result of delays in passing the VAT bill.
It also told the IMF that it expects revenue from the increase in mining firms’ corporate tax from 25 to 35 percent to come from the beginning of next year. Government is hoping to gross some 488 million Ghana cedis from this tax.