....As World Bank Reacts To $1 billion Loan Bid
The World Bank Office in Washington DC has formally reacted to ongoing debate on the proposed one billion dollar loan agreement between the government and the International Financial Consortium. The opposition National Democratic Congress held a press conference earlier this week and described the agreement as a sham.

The NDC also noted that the agreement will cause financial loss to the state but the ruling New Patriotic Party hurriedly organized a press conference and denied the allegations made by the NDC.

The NPP told the press that the Governor of the Bank of Ghana, Finance Minister as well as the Senior Minister, J. H. Mensah had conducted investigations into the dealings of International Financial Consortium and found it to be trustworthy.

Government also corroborated the NPP’s views by saying that the Consortium is recognized by the World Bank. But the World Bank says it has no knowledge of the transaction and is pursuing inquiries about the transaction with the government. Following is the unedited press statement issued by the World Bank.

Washington DC, July 12, 2002 -- Some reports have recently appeared in the Ghanaian Press suggesting that the International Finance Consortium, with which the Government of Ghana is negotiating a US$1 billion loan agreement, is an institution that is “recognized” by the World Bank. This is incorrect as the World Bank has no dealings with nor direct knowledge of the International Finance Consortium.

In particular we would like to point out that the International Finance Consortium is not connected in any way to the International Finance Corporation (IFC), the private sector leading arm of the World Bank Group. We are pursuing inquiries with the Ghanaian authorities about the details of this possible transaction.