Remove obstacles to loans for private sector

Cape Coast, Jan 17, GNA - The Executive Director of the Central Region Development Commission (CEDECOM), Mr John Akowuah, has called on micro-financing institutions to remove obstacles that impede the granting of loans to the private sector.

Mr Akowuah noted that easy access to credit facilities for the private sector, which employs the bulk of the people in the informal sector, would enhance the government's efforts to make the area the engine of growth.

He was addressing a meeting of some private entrepreneurs at Cape Coast on Monday.

"If the informal sector is made to have easy access to micro-credit it can accelerate the poverty reduction programme," the Executive Director stated and called on the government to make efforts to increase the capacity of micro-financing institutions and to put in place prudential regulatory framework to make them sustainable.

Mr Antwi Boateng, Head of the Micro-Finance and Enterprise Development of the Commission, said the prime objective of the unit was to use micro financing to alleviate poverty by reaching out to more people in region.

Mr Boateng said CEDECOM was emphasizing on group disbursement of loans because it was more favourable in terms of discipline, easy savings mobilisation and loan repayment.

Mr John Paul Maison Okyireh, Cape Coast Branch Micro Credit Scheme Manager, said 35 groups made up of between 20 to 25 members each had been formed in the Cape Coast Municipality, Mfantseman and Twifu Heman Lower Denkyira Districts while efforts were being made to extend it to the other Districts in the region.

Mr Okyireh said CEDECOM was funding the programme through its internal generated funds but high demand had made the Commission to seek support from donor agencies. 17 Jan 07