TUC praises govt’s $4bn banking sector clean up

Dr. Yaw Baah is the Secretary- General of the TUC

The
body responsible for the welfare of Ghanaian workers, TUC, has lavished
praises on government for cleaning the banking sector.

In
a release aimed at offering a view of the Trade Unions Congress on
government’s 2019 Mid- Year Budget Review, it commended the governor of
the Central bank for implementing what it calls “difficult but necessary
measures.”

A banking sector cleanup in 2017 and 2018 saw the collapse of nine banks and microfinance institutions.

This
includes 192 microfinance companies having their licenses revoked with
another 155 insolvent microcredit companies that have ceased operations
also suffering the same fate.

The Central Bank in a press release also revoked the licences of 23 insolvent Savings and Loans companies.

BoG
explained that regarding the microfinance companies, it took the action
pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking
Institutions Act, 2016 (Act 930).

The TUC has described the BOG’s exercise as “successful.”

It added that “There are indications that the (banking) sector is regaining public confidence. The economy of Ghana is expanding at a higher rate. A solid banking sector is required to support even faster growth of the economy.”

The
Workers Union also praised the government for what it termed as
consistent improvement in some key macroeconomic indicators.

“In
2018, real GDP (non-oil) grew by 6.5 percent; the end-of-period
inflation dropped to 9.4 percent; the overall budget balance was -3.9
percent of GDP; primary balance was 1.4 percent of GDP; and gross
international reserves was 3.6 months of imports of goods and services.

The
indicators which it said were “remarkable achievement in macroeconomic
management” has led to “further improvements in some of the indicators
this year.”

 “At the end of the first quarter overall GDP had grown by over 6.7 percent; inflation had dropped further to 9.1 percent; overall budget balance was -3.3 percent; and gross international reserves had increased to 4.3 months of imports of goods and services,” the statement pointed out.

Source: Myjoyonline.com

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