By
Lydia Kukua Asamoah, GNA
Accra, Nov. 13, GNA –
Mr Ken Ofori-Atta, Minister of Finance said the government is working with the
Banking Community to launch a GH¢2 billion credit and guarantee scheme in 2020
to cushion the banking sector.
The initiative would
in particular, be structured to incentivise banks to lend to private sector at
discounted lending rates.
“The scheme, which
will start in the first quarter of 2020 will be targeted at specific industries
such as agri-business, manufacturing, hospitality, tourism and the tech-sector
amongst others.
Mr Ofori-Atta
announced this on Wednesday when he presented the 2020 Budget Statement and
Economic Policy to Parliament in Accra.
Outlining
initiatives that would be undertaken next year to boost private sector growth,
he said there would be the establishment of Enterprise Credit Scheme (ECS) that
would ensure a reasonable level of lending rates.
“In 2019, government
engaged many stakeholders with respect to access to credit for the private
sector. Experts went across the length and breadth of the country to meet with
SMEs and artisans, proprietors and associations to get a better understanding
of the challenges they face in accessing credit, while the Ministry also
engaged the AGI, Banker’s Association, among others prior to this year’s
budget.
“Through
evidence-based research and field engagements with over 40 business
associations, credit needs of micro, small and medium enterprises in the
country, Government is ready to take advantage of the macro gains, and enhanced
social cohesion through our social intervention initiatives to focus on private
sector growth, home ownership and infrastructure development, including toll
roads.
The key institutions
to anchor this shift would be the National Development Bank (NDB) and the Ghana
Infrastructure Investment Fund (GIIF), the Finance Minister stated.Â
GNA
