Commercial Banks Threaten Immediate Suspension Of Lending To Public Sector Workers

According to an official financial sector report filed by senior economic journalist Maclean Kwofi for Graphic Online, commercial banks across Ghana are threatening to suspend all new credit facilities to public sector employees whose salaries are processed through the Controller and Accountant-General’s Department (CAGD). Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, confirmed that the financial resolution follows severe, recurring delays by state payroll managers in remitting deducted loan repayments back to commercial lenders.

Financial analysts, bank treasury managers, and risk compliance officers detailed that prolonged delays in transferring statutory payroll deductions create severe liquidity bottlenecks and escalate non-performing loan ratios across commercial banking balance sheets. Bank executives emphasized that while loan repayments are automatically deducted at source from civil servants’ monthly paychecks, state treasury delays in releasing these funds to commercial banks disrupt institutional credit cycles.

Public sector worker unions, civil service associations, and financial monitors expressed deep concern over the impending credit freeze, urging the Ministry of Finance and CAGD to resolve deduction transfer backlogs immediately. The Ghana Association of Banks confirmed that formal high-level engagements with government treasury officials are underway to avert a complete freeze on public sector consumer loans.

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