The government of Ghana has acknowledged that an ongoing parliamentary deadlock has delayed the disbursement of a crucial $300 million loan from the World Bank. The funds, part of a larger financial support package aimed at stabilising the country’s economy, addressing fiscal deficits, and financing key sectors, remain inaccessible due to the unresolved impasse in Parliament.

The legislative body has been on an indefinite recess, with the two main political parties at an impasse over which side holds the majority of seats. Finance Minister Dr. Mohammed Amin Adam explained that the necessary legislation to secure the funds could not be passed due to the Parliament’s inactivity.

“We should have passed certain bills that would have made us eligible for the $300 million from the World Bank. However, the World Bank has not disbursed the funds because these bills remain unapproved due to Parliament not functioning as it should,” Dr. Amin Adam said during his monthly economic update on Tuesday.

The minister expressed confidence that the parliamentary standoff would soon be resolved, allowing the government to access the funds without major setbacks. He also noted that, despite the deadlock, the government is ready to present the mini-budget but is waiting for a confirmed date for its reading.

“There are concerns that if the stalemate continues, it could impact government operations, including the payment of salaries to public sector workers,” he said.

Dr. Amin Adam admitted that the parliamentary crisis had already affected the economy, but he remained hopeful that Parliament would reconvene, with a resolution expected by December 16, 2024.

Source:TheDotNews