Gov’t concedes errors in Chinese loan documents


Government has denied claims that the country will pay as much as 2.3 billion dollars more for the loan it is contracting from the Chinese Development Bank in addition to the principal and interest.

The Minority in Parliament raised concerns on Thursday that the country will commit nearly 7 billion dollars worth of the country’s crude oil to the Chinese.

They claim this violates the Petroleum Revenue Management Law and smacks of corruption.

But Deputy Finance Minister, Seth Terkper has told Joy News the claims are false.

“Ghana’s oil is not being collateralized. The proceeds from the off-take will be paid into bank of Ghana just like any sale of crude oil and out of the proceeds that go into the Petroleum Holdings Account, the distribution will be made into the Stabilization Fund, Heritage [Fund] and [the] annual budget funding amount.”

He explained that the part of the proceeds that go into the Consolidated Fund will be the only resource that will be used in servicing the loan.

Mr Terkper also denied claims that government has set the price at which the Chinese will buy the country’s oil at 85 dollars, well below the prevailing market price. Dr. Matthew Opoku Prempeh had earlier accused the government of pegging the cost at an unreasonably low price compared to the prevailing crude oil price.

Mr. Terkper, said the volatility in crude oil price makes it unrealistic to fix the price, adding that the “off-taker agreement calls for the use of average prices that will be adjusted periodically.”

He, however, conceded that there were errors in the documents presented to Parliament which must have informed the Minority’s views on the matter.

Source: Joy Online

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