Deputy Minister of Finance, Thomas Ampem Nyarko, has dismissed assertions by the Minority in Parliament that government is misrepresenting the nature and purpose of a newly approved $360 million financing agreement with the International Development Association (IDA) of the World Bank.
Parliament approved the facility on Tuesday, July 1, as part of Ghana’s Second Resilient Recovery Development Policy Financing programme, designed to support the implementation of the 2025 national budget.
Addressing criticisms from the Minority on the Citi Breakfast Show on Wednesday, July 2, Mr. Nyarko said the government’s decision to allocate the funds towards the clearance of arrears, including payments owed to road contractors, is consistent with its fiscal consolidation efforts and aimed at restoring economic stability.
He stressed that the agreement does not impose restrictions on the specific use of the funds, pointing out that it is a general budget support facility and not earmarked exclusively for any single expenditure item.
“It is not a tied facility. It forms part of government’s revenue streams, and decisions on how it is utilised are based on Cabinet’s fiscal priorities,” Mr. Nyarko explained.
His remarks followed claims by Minority MPs, including Kojo Oppong Nkrumah, Ranking Member on the Committee on Economy and Development, who argued that the government was attempting to mislead the public by implying the facility was not a loan and by obscuring its intended use.
Mr. Nyarko pushed back against that narrative, describing it as inaccurate. He clarified that while the government has chosen to direct the funds toward arrears, including contractor payments, the facility itself is not limited to that purpose by its terms.
He noted that Ghana received an initial $300 million disbursement in 2024 under the same programme and that the newly approved $360 million represents the second tranche of the World Bank’s broader support to Ghana’s economic recovery efforts.
Cabinet, according to him, decided that the entire amount would go toward settling outstanding obligations in line with efforts to restore fiscal credibility and liquidity across key sectors.
