The German Ambassador to Ghana, H.E Ruediger John on August 14, 2014 signed a new financial cooperation agreement of €122.7 million to complement efforts of the government of Ghana in resolving the country’s recent economic downturn.
The agreement, which was signed by the Deputy Minister of Finance, Hon. Cassiel Ato Forson, on behalf of the government, would include €110.7 million concessional loans spanning over a period of 40 years on an interest rate of 0.75%, with the rest of the quoted amount being earmarked as grants.
According to Mr. John, Germany’s objective for providing the financial assistance to Ghana is as a result of intergovernmental discussions on bilateral development cooperation between the Republic of Ghana and the Federal Republic of Germany which has over the years culminated into a very fruitful mutual partnership.
He further explained that this solid friendship between both countries therefore obliges both governments to offer an extending hand to the other party in times of need in demonstration of the shared solidarity and the enhancement of the mutually beneficial relations.
“During difficult times, it is especially important to have honest friends, who will assist the country in finding its way out of financial turmoil. Germany will also in the future remain a reliable and strong partner” he said.
The €12 million in grants is expected to fund Ghana’s Public Finance Management, Deposit Protection System and also support vocational training in the country, while the concessional loans will be allocated for Multi-Donor Budget Support, Performance-oriented Public Finance Management Support Programme and District Development Facility Renewable Energy Programme.
By: Prince Asare, Diplomatic Call
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