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Ghana could have gone bankrupt if we did not collect loans – Finance Committee

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According to a Finance Committee report on the Loan Facility Agreement between the government of Ghana and AfreximBank for a loan of up to $750 million, the country would have gone bankrupt if this loan amount had not been approved.

A recent report by Parliament’s Finance Committee revealed the country’s precarious financial situation, stating that the Bank of Ghana’s foreign reserves are dwindling and have dropped from $9 billion to around $3 billion.

According to the report, “these challenges are exacerbated further by the Bank of Ghana’s rapidly dwindling reserves, which have fallen from $9 billion to around $3 billion.” With a monthly demand of more than $600 million, the central bank’s reserves may be depleted in a matter of months if immediate steps are not taken to shore up the country’s reserves.”

Finance Minister Ken Ofori-Atta explained to MPs that the country needed this loan amount to shore up the Central Bank’s reserve position.

The Minister added that “it is vital for the government to get the $750 million facility to help shore up the reserve position of the Bank of Ghana in order to avoid the country owing on its international commitments and also to avoid the country entering bankruptcy.”

Ghana could have gone bankrupt if we did not collect loans - Finance Committee

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