EU, Ghana Sign Development Fund Agreement

The 10th European Development Fund (EDF) Country Strategy Paper and National Indicative (CSP/NIP) agreement was signed yesterday between Ghana and the head of European Union (EU) delegation to Ghana, his Excellency, Mr. Claude Maerten. The 10th EDF CSP/NIP provides the country diagnosis of challenges, outlines the response strategies and also provides an additional financial resources in the sum of 35 million Euros towards achieving an accelerated poverty reduction, equitable economic growth and integration of the Ghanaian economy into the global economy.. According to the Minister for Finance, Dr. Kwabena Duffuor, the additional resources will provide the Vulnerability (V)-FLEX Facility, established by the EU to mitigate the social and economic impact of the potential second round of the global financial meltdown. He disclosed that an earlier Addendum towards the Financing Agreement for the Millennium Development Goals( MDGs) -Contract, the V-FLEX Facility of 35 million Euros was fully released by the EU in December 2009. He added the MDG-Contract is a new disbursement modality being adopted by the EU under the 10th EDF Programme to implement the EU’s General Budget Support to Ghana. “The disbursement modality will offer a long-term commitment and greater predictability of disbursements, as well as boost Government's efforts towards attaining middle-income status and achieving the MDGs”, he stated. He therefore thanked the EU for their continued support towards creation of wealth and reduction of poverty as enshrined in Ghana's Medium Term Strategy Paper. The Head of EU Delegation to Ghana, Mr. Claude Maerten, said the 35 million Euors will help some developing countries mostly affected by the financial crises to cover some important part of their budget deficit. He also thanked the Finance Minister for his time and hospitality for the excellent relationship the EU enjoys with the Government.