- The president, Nana Akufo-Addo, has revealed that Ghanaian businesses would enjoy a GHC1 billion stimulus package
- According to him, the government intends to support businesses to survive as the coronavirus continues to spread globally
- He said this as part of the measures taken by the government when he announced a partial lockdown on Friday, March 27, 2020
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President Akufo-Addo has revealed that the government has set aside a GHC1 billion package to support businesses in Ghana.
According to him, the decision is intended to help businesses continue operations as the coronavirus takes a toll on the economy.
He indicated that the package, dubbed the Coronavirus Alleviation Programme (CAP), will attempt to revive industries in Ghana affected by the COVID-19 outbreak.
Per a citibusinessnews.com report, the president gave the announcement as he directed for there to be a partial lockdown on Friday, March 27, 2020.
The lockdown is an attempt to contain and possibly eradicate the virus from Ghana as it has spread to over a hundred people and led to loss of lives.
The president noted that commercial banks would also support the pharmaceutical, hospitality, service and manufacturing sectors with a GHC3 billion facility.
The package is a positive response to the Bank of Ghana’s 1.5% reduction in policy rate and 2% reduction in reserve requirement.
President Akufo-Addo went on to say that the government is providing additional relief such as the “extension of the tax filing date from April to June; a two percent (2%) reduction of interest rates by banks, effective 1st April, 2020, the granting by the banks of a six (6) month moratorium of principal repayments to entities in the airline and hospitality industries, i.e. hotels, restaurants, car rentals, food vendors, taxis, and uber operators.”
He revealed that credit exposures of other sectors would be reviewed on a case by case basis.
Mobile Money users, he indicated, can now enjoy “a one hundred percent (100%) to three hundred percent (300%) increase in the daily transaction limits for mobile money transactions.”
In other news, the Bank of Ghana’s Monetary Policy Committee (MPC) has reduced the policy rate to 14.5%.
The reduction is a 150 basis point reduction in the rate, which was initially 16% and remained unchanged for a long time.
The policy rate is the rate at which the Bank of Ghana lends to commercial banks; it also helps to determine the rate customers would pay on loans from banks.
The MPC explained that the decision was reached due to the ongoing effects of the coronavirus on a wide range of economic activities.
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