Covid-19: Gov’t asked to set up parallel banks to support ailing businesses

President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, has asked the government to consider channeling funds from the stimulus packages into a parallel bank.
According to Dr. Joseph Obeng, this bank should be tasked with providing business credits to these ailing banks at lower rates.
The Government allocated GHS600m stimulus package for small and medium scale enterprises (SMEs), as part of efforts to deal with the effects of the Covid-19 on the business community.
The loans formed part of measures put in place by the government of Ghana to mitigate the strain on Small and Medium scale businesses across the country that has been severely hit by the coronavirus pandemic.
Speaking on Atinka FM’s AM Drive with host Ekourba Gyasi, President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, said the parallel banks will set the tone for the mainstream banks to reduce interest rates on loans.
Dr. Joseph Obeng explained that situations like these birthed the Agricultural Development bank, National Investment Bank among others to support certain sectors of the economy.
“ If a parallel bank is set-up and is giving credit to business at lower rates, the mainstream banks would be left with no other option than to also reduce its interest rates”, he added.
President of the Ghana Union of Traders Association (GUTA), Joseph Obeng, said the association is optimistic that the government will introduce more stimulus packages in the mid-year budget review.
” The Finance Minister has hinted another stimulus package and we are looking forward to that. We hope the government continues to support business, especially in this covid-19 time,” he noted.
 
 
Ghana | Atinkaonline.com | Vivian Adu Boatemaa