South Korea aids Ghana to Offset High Interests on Developmental Loans

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Ghana has signed a framework agreement with South Korea to enable it obtain a concessionary loan facility from the Economic Development Cooperation Fund (EDCF).

The framework agreement, to be implemented from this year to 2019, would grant Ghana access to about $200 million dollars to finance EDF loan projects.

The Minister of Finance, Mr Ken Ofori-Atta and the Korean Ambassador to Ghana Mr Woon-Ki Lyeo signed the agreement on behalf of their respective countries.

Mr Ofori-Atta said the agreement was significant for the country to continue to access funds to undertake developmental projects.

He said the loan conditions, including a 10-year grace period and 25 years repayment period with 0.5 per cent interest rate would support the gradual growth plan of the country.

The agreement, the Minister said was part of government’s strategy to reduce the high interest payments facing the country, adding that the government would deepen such relationships for mutual benefits.

On his part, the South Korean Ambassador to Ghana, Woon-Ki Lyeo, said the agreement forms part of the Republic of Korea’s support to the development of Ghana.

He said South Korea as a developing partner was ready to share its experiences with Ghana in addressing the socio-economic challenges.

He said the agreement would further empower Ghana to obtain the EDF to undertake developmental projects.

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