The Swiss government is phasing out its general budget support to the country after over a decade of assistance to government in poverty reduction programmes as well as broad-based development.

Swiss Ambassador to Ghana, Gerhard Brugger speaking after a signing ceremony to provide CHF 15 million in general budget support for 2015-2017, said although Swiss government will no longer provide general budget support, it will still work with government in area of economic cooperation.

Switzerland has been providing general budget support since 2002 under government’s Multi-Donor Budget Support (MDBS) framework.

According to Mr. Brugger, the current operation has been structured to facilitate an orderly exit from general budget support in 2017 and shift towards other forms of cooperation in light of the country’s maturing level of development and growing domestic resources

“Subject to the successful completion of the assessment of the underlying principles, the macroeconomic situation and the overall progress of the government of Ghana pertaining to the performance assessment framework matrix, Switzerland expects to disburse a first tranche of CHF7 million to Ghana’s budget for the 2015 fiscal year,” he said.

The economic cooperation between the two countries, Mr. Brugger said, focuses on promoting good economic governance and strong institutions and strengthening competitiveness and inclusiveness.

Finance Minister, Seth Terkper, who signed the budget support agreement on the country’s behalf said considering the dwindling commodity prices which has led to drastic cut in oil revenues, donor support like that from the Swiss goes a long way to help government prosecute its development agenda.

The Minister stated that the release of the Swiss budget support is a testament that indeed that government’s fiscal consolidation agenda is on track and the support of its donors at this point very crucial.

He was hopeful that despite the phasing out of general budget by the Swiss government, the two countries could still work out an economic cooperation deal that will allow Ghana benefit from the European country’s assistance.

The bilateral relationship between the two countries dates far back to 1957 when Ghana won independence. Over the years, Switzerland has provided technical and financial assistance in areas of economic and financial management, private sector development and entrepreneurship, sustainable trade value chain and infrastructure with an average annual budget of around CHF 20 million in grants.