15
Fri, Dec

GOVT READY WITH GHC25M STIMULUS PACKAGE - Finance Minister

Business & Economy

The Minister for Finance, Ken Ofori-Atta, in an exclusive interview with the Daily Statesman, has announced that the Akufo-Addo-led New Patriotic Party government has authorized the release of an amount of GHC25 million for the implementation of the first phase of government’s plan to provide stimulus package for distressed companies.

The Minister for Finance, Ken Ofori-Atta, in an exclusive interview with the Daily Statesman, has announced that the Akufo-Addo-led New Patriotic Party government has authorized the release of an amount of GHC25 million for the implementation of the first phase of government’s plan to provide stimulus package for distressed companies.

 

In his recent encounter with the media at the Flagstaff House, to mark his six months in office, President Nana Addo Dankwa Akufo-Addo announced that 80 distressed companies had been approved by government to benefit from stimulus packages aimed at reviving and positioning them on sustainable growth path.

The president added that as at the end of June 2017, 285 companies had, so far, applied for stimulus package. After screening 118 applications, 80 were approved and adjudged eligible for various stimulus packages by a committee working on the initiative.

The President disclosed further that government had voted $50 million for the stimulus package while financial institutions had also pledged additional $20 million. This, he noted, would help in the revival of our industrial sector.

“The release of the amount is in fulfilment of government’s commitment to provide support to distressed companies, as announced in the 2017 budget and the mid-year review. And what is critical is that the amount will be strictly disbursed in accordance with agreed modalities to ensure that the support is well targeted to generate the desired and expected outcomes,” Mr Ofori-Atta stated.

The minister further disclosed that government had, since Tuesday, August 1, 2017, begun the process of paying arrears owed to businesses “to get them back to work.”

It may be recalled that government proposed in the 2017 Budget Statement to pay 20 per cent of the outstanding claims totaling GHC3,428,691.341.64, compiled from the year 2016, pending the an audit and validation of most the claims.

According to Mr Ofori-Atta, the Finance Ministry has “categorized all the outstanding commitments into three separate bands to guide the payments.”

The arrangement will see up to 100 per cent payment for claims up to GHC100, 000.00. Claims ranging between GHC100, 001 and GHC1, 000,000 will receive up to 50 per cent payment, while there will be up to 15 per cent payments for claims above GHC1, 000,000.

“In developing the modalities, consideration was given to the age and amount and also the principles of fairness and equity,” the Finance Minister stressed.

 

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