...$350mil & change in contractual parties ...
Government sources say some modifications have been made to the loan agreement with the International Financial Consortium (IFC), which has generated much debate and controversy. Joy FM can confirm that the new agreement submitted by the Finance Minister provides for a total amount of $350 million and not $1 billion as earlier proposed. It would be for 25 years at an annual interest rate of 2.5%. Consequently, the loan transaction fee of 3.5% payable would be on the $350 million and not one billion dollars.

The sharp differences in the current agreement is expected to generate debate in Parliament today, with the Minority members arguing that it must be laid before the house as an entirely new agreement. Government sources say, they anticipate the potential problems inherent in the swift changes to the original agreement, but argue that they should be considered as amendments.

The Minority members who have already dissociated themselves with the report of the finance committee on the loan agreement would also raise issues about the change in the contractual parties. While the original agreement was between Ghana and CHEMAC Inc, representing the International Financial Consortium, the new one is between Ghana and the Consortium represented by Chemac Inc.