The European Union (EU) today July 02, 2009 approved a €175 million MDG Contract facility for Ghana after bilateral discussions on the sideline of the on-going AU Summit in Sirte, Libya.

A press statement signed by the Information Minister, Zita Okaikoi said the facility will be implemented over the period 2009 to 2014 to support the Government of Ghana’s development agenda aimed at achieving the Millennium Development Goals (MDGs).

The MDG Contract is a new modality which will offer longer term commitments (over a six-year period) and greater predictability.

EU Commissioner Lius Michel signed for the EU while Foreign Affairs Minister Alhaji Mohamed Mumuni and Deputy Finance Minister Seth Tekper signed for Ghana.

Mr. Michel remarked: “the offer follows a careful study of Ghana’s budget program and the recognition that it showed a strong commitment to fiscal discipline and reduction in expenditure.”