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Business News of Thursday, 25 June 2020

Source: classfmonline.com

BoG optimistic coronavirus will be over next year – Governor

Governor of the Bank of Ghana, Dr. Ernest Addison Governor of the Bank of Ghana, Dr. Ernest Addison

The Governor of the Bank of Ghana (BoG), Dr Ernest Adison, has expressed optimism that the coronavirus pandemic will be over by next year so the economy can bounce back.

He admitted that COVID-19 has had a negative impact on all the sectors of the Ghanaian economy.

Speaking about why banks are no longer giving loans as they previously did, Dr Addison said there is no need to worry over that since it is obviously a consequent of the pandemic.

He explained that the banks are being shrewd in their operations in the midst of the pandemic.

The central bank’s report for the first half of this year indicates that banks’ loan portfolio fell as compared to previous years’.

Asked what accounted for the drop, Dr Addison explained in an interview with Graphic Talks360 on Thursday, 25 June 2020 that the banks are only exercising care so that they do not create more non-performing loans in the system.

“I don’t think we should be too concerned; the banks also have to be careful, so, they do no create more non-performing loans in the system,” he said.

He added: “It is important they give out good credit”.

Dr Addison further indicated that the central bank is optimistic that by next year, the COVID-19 pandemic will be over for the glory of the banks to be restored.

“We are hopeful that the pandemic will be resolved next year,” he said, adding: “The outlook for the banks will better.”

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