Prepare nation for expected oil boom -JAK to banks

Accra, Aug. 20, GNA - President John Agyekum Kufuor has urged the country's banks to help prepare the nation for the impending boom from the crude oil discovery and planned re-launch of the integrated bauxite and aluminium industry through diversification of their product portfolios.

These should cover virgin areas with great prospects within the economy including industry, manufacturing, real estate, tourism, construction, energy, ICT and agriculture. Addressing the Eighth Annual Luncheon of the Ghana Association of Bankers at the La Palm Royal Beach Hotel in Accra on Wednesday, President Kufuor said as a vehicle for movement of money, the banks must also develop financial muscle and skills for managing risk. This was necessary to enable them to engage in leading global businesses in critical areas like oil, energy, telecommunication and ICT, which were capital intensive. He said it was on account of this that the Central Bank's efforts towards increased capitalization of banks operating in the country needed to be supported.

"The Banks must be strong and competent enough to mobilise both domestic and foreign capital to support the development projects, businesses and objectives of the state and the people. President Kufuor told them to be equally mindful of the vision and aspirations of government and the people by taking their corporate social responsibility more seriously and be supportive of good causes. "They must prove to be good corporate citizens of Ghana." He recognized the sector for the substance and accelerated growth of the society and economy and asked that the government and the finance sector must always remain true partners. President Kufuor reiterated the resolve of both the government and Bank of Ghana to manage the economy in such an efficient manner as to keep it afloat despite the turbulence on the oil market and other related challenges.

The economy, he said, was enjoying sustained growth of over 6.5 per cent and should have attained single-digit inflation and with low interest rates and an even stronger cedi, but for the distortions created by the crude oil price hike. He observed that the regulatory framework and modern financial infrastructure established through strategic laws and measures were changing the conduct of business in the country for the better and improving the investment climate. These were engendering growth in the banking sector as evidenced from the increase in the number of financial institutions. The healthy development was setting in trail the spread of support and innovative services in terms of enhanced credit accessibility to small and medium enterprises and banking for the ordinary Ghanaian. The association presented President Kufuor with a plaque in appreciation of the country's economic transformation and political stability.