Our attention has been drawn to a statement by the Ranking Member of the Select Committee on Trade, Industry and Tourism of Parliament of Ghana, Hon. Emmanuel Armah Kofi Buah (MP) on Friday, 17th December 2021 that the Ministry of Trade and Industry could not fully account for the total amount of Ghs269 million allocated for interest subsidy payment for loan facilities under the One District One Factory (1D1F) Initiative.
The Ministry wishes to state categorically that, the said statement attributed to the Ranking Member is not only misleading but totally inaccurate. The Ministry, upon request by the Hon. Ranking Member submitted full information on the application of the full amount of Ghs269 million allocated for interest subsidy payments for loan facilities granted by Selected Participating Financial Institutions (PFIs) to de-risk loans advanced to 1D1F companies.
For the avoidance of doubt, the following PFIs have received a total of Ghs269,689,383.76 as interest subsidies in support of 1D1F companies between 2017 and 2021. It is important to note that. the PFIs based on loan agreements signed between them and 1D1F companies. apply the interest subsidies allocated to them to cover part of the interest payment for loans granted to 1D1F companies. when interest payments are due. Neither the Minister nor any representative or the Ministry is responsible for disbursing interest subsidies directly to 1D1F companies.Based on reports submitted to the Ministry, the PFIs have to date utilized an amount of Ghs62,281,484.29 to cover interest subsidies from Government to support loans granted by the PFIs to 1D1F companies.
The balance of Ghs207 million is in the custody of the PFIs pending the maturity dates for interest payments for loans granted to IDIF companies in line with their loan agreements. The Ministry expected the Ranking Member to have put out the information also available to him, that to date the PFls have collectively granted loans amounting to Ghs2.69 billion to support 1D1F companies.
The Ministry wishes to use this opportunity to assure the private sector operators interested in the 1D1F Initiative that, it will continue to provide support for their projects working in collaboration with the PFls, to sustain and increase the over 153,782 jobs created by 1D1F companies across the country.