Accra, Nov. 5, GNA - Ghana and Germany have signed an agreement for financial cooperation for the period 2010-2012 amounting to 107.5 million Euro, or approximately GH¢196 million.

A statement from the German Embassy in Accra on Friday said The Agreement was initialled in Accra last week by Dr Kwabena Duffuor, Minister for Finance and Economic Planning and Mr Eberhard Schanze, Ambassador of the Federal Republic of Germany to Ghana. It said the German Government supported the Government of Ghana's policies and strategies aimed at reducing poverty and the achievement of the Millennium Development Goals (MDGs).

It said the money would be used in three priority areas of German cooperation with Ghana, - agriculture, sustainable economic development and decentralization, as well as a contribution to the Multi-Donor Budget Support (MDBS).

The statement said the agreement for the projects was in fulfilment of the financial cooperation commitment made during the last intergovernmental negotiations between the Governments of Ghana and Germany held in December 2009.

The German Government had made a commitment of 130 million Euros to Ghana for the period 2010-2012, a pledge that represented an increase of more than 60 per cent, thus showing its acknowledgement of Ghana's success in practising good governance.

The statement said 85 million Euros would be provided as consessionary loans out of which 55 million Euros would be provided as general Budget support (MDBS) to the Government, 23 million Euros for the establishment of an Outgrower and Value Chain Fund and 7.0 million Euros would be used to support the rollout of E-zwich to rural areas (Rural Branchless Banking).

In addition 22.5 million Euros would be provided as grant. This is made up of 21 million Euros to support the decentralization policy of the Government of Ghana by financing the District Development Facility, 1.0 million Euros for measures to support the Ministry of Agriculture to establish the Outgrower and Value Fund and 500,000 Euros to strengthen domestic accountability in supporting the Ghana Audit Service.

The statement said the funds would be made available to the Government of Ghana through KfW, the German Development Bank, which acts on behalf of the German Government in the field of Financial Cooperation. 5 Nov. 10