Business News of Tuesday, 25 May 2021
Source: www.ghanaweb.com
2021-05-25
Sampson Akligoh, Director of Financial Services at the Finance Ministry
• The Development Bank Ghana is expected to complement the capacity of the Agricultural Development Bank
• A cross section of Ghanaians have questioned the need to establish another bank
• But government says the bank is focused on providing medium to long term financing to key growth sectors of the economy
Director of Financial Services at the Finance Ministry, Sampson Akligoh has assured the establishment of the Development Bank Ghana will complement the capacity of the Agricultural Development Bank. (ADB)
His comments come after a cross section of Ghanaians have raised concerns over government’s plans to establish a new bank which serves the purposes of an already existing one.
In an interview on TV3’s Business Focus, Samson Akligoh explained a key focus of the bank is to provide medium to long term financing to key growth sectors of the economy.
“The need for the Development Bank Ghana is really to create a superior institution that does not do the work of ADB but actually enhances the capacity of ADB to provide financing that is currently not available.”
“When the Minister of Finance [Ken Ofori-Atta] made mention of the establishment of the Development Bank Ghana, a key focus he talked about is medium to long term financing and he pointed the way commercial banks work is to fundamentally mobilize deposits which are rather short term and it is based on these deposits that they create credit in the economy.”
Meanwhile, Minister of State designate for Finance, Charles Adu Boahen has touted the establishment of the Development Bank Ghana (DBG) as one that would stimulate growth for private enterprises.
Adu Boahen believes the bank will offer a key allocation of development capital to critical growth sectors of the economy at a sustainable interest rate and long tenures.
Ghana and the European Investment Bank (EIB) last week in Belgium signed an agreement to secure some €170 million for the establishment of the bank.
President Akufo-Addo in his remarks affirmed the bank will play a key role in the country’s economic recovery and structural transformation.
The DBG is however expected to commence operations in July this year.