Banks to promote economic recovery by financing viable projects - Report

- Financial institutions in Ghana have indicated their intent to support business projects that could help revive the economy

- The MD of Consolidated Bank Ghana, Daniel Addo, stated that banks are committed to supporting businesses in Ghana

- The Deputy CEO of Consolidated Bank Ghana, John Awuah, added that banks are playing a key role in reviving Ghana's economy

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Banks in Ghana have expressed readiness to support viable projects in order to help revive the economy, YEN.com.gh has learned.

Regardless of the outbreak of COVID-19, the banks indicated that despite the pandemic they are ready to make loans available to small and medium enterprises (SMEs) and individuals in Ghana.

According to the Managing Director of the Consolidated Bank of Ghana (CBG), Daniel Addo, the financial institutions remain committed to providing support to businesses in the country.

READ ALSO: ECOWAS Bank supports member states with almost $3 billion

Per a report by thebftonline.com, he explained that “today, despite COVID-19, business is going, albeit with precautions. So, we have recalibrated the way we interact; and it is the same way with banking and lending.”

John Awuah, the Deputy Chief Executive Officer of the Ghana Association of Bankers (GAB), also indicated that the banking and financial services sector remains critical to any recovery programme aimed at bringing the economy back to life.

He added that the industry recognises it has a key role to play in any form of economic recovery and, as such, stands ready to support all efforts at resuscitating the economy from the devastating impacts of the coronavirus pandemic.

Awuah went on to say that that banks could have easily retreated into their shells and hoped the pandemic passed quickly but were rather at the forefront of the fight by donating to various charities and funds to fight the virus in addition to the intervention for their clients.

In other news, banks in Ghana have eased their stance on credit facilities to businesses regardless of the high risk of default on debts, a report by the Bank of Ghana (BoG) has revealed.

The BoG’s Credit Conditions Survey for June 2020 showed non-performing loans have increased to 15.7 percent of banks’ assets in June from the 14.5 percent recorded in March 2020.

For the next two months, businesses can, therefore, access credit with ease.

READ ALSO: Development Bank to be established in September; $500m seed capital to be mobilised

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Source: YEN.com.gh