GRi in Parliament 08 - 06 - 2002

Report on OPEC fund agreement adopted

Accra (Greater Accra) 08 June 2002- Parliament on Friday unanimously adopted a report on an agreement for the protection of investment between government and the OPEC Fund. The main object of the agreement is to support private sector development by assisting small and medium sized enterprises through the granting of loans and equity investment.

Mr Eugene Atta Agyepong, Chairman, Finance Committee, moving for the adoption of the report, said under the agreement, loans might be provided directly to enterprises concerned or to financial intermediaries for on lending to private sector enterprises.

He said the country would benefit from the agreement because it would enable small and medium-sized enterprises to make significant and meaningful contribution towards economic development and employment creation. "It is also expected that by investing in private enterprise, it would provide a demonstration effect and encourage the participation of other private investors," he added.

Mr Agyepong said the agreement provided among other things, a tax clause that insulated from taxation payments to the fund in respects of dividends, loan interest and capital gains and that it should be remitted without withholding. "Acceptance by both parties that matters relating to the fund's investment be governed and construed in accordance with the term of this agreement and international law."

The OPEC fund is a multi lateral development financing institution that seeks to promote co-operation between member states of the Organisation of Petroleum

Exporting Countries (OPEC) and other development countries.

GRi…/

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