Banks to Ease Up Access to Edif

The Ministries of Trade and Industries and Finance and banks participating in the Export Development and Investment Fund (EDIF) yesterday met in Accra to brainstorm on how to streamline the process of accessing the fund.

EDIF was established by Act 582 last year to promote export and to create jobs in the country, but the process of accessing it has been found cumbersome.

Banks participating in the programme are the Agricultural Development Bank (ADB), Ghana Commercial Bank (GCB), SSB Bank Ltd, the National Investment Bank (NIB) and the Ecobank. Others are Prudential Bank, CAL Merchant Bank, Trust Bank, 1st Atlantic Bank and Stanbic Bank. The banks get ten per cent of the interest returns while five per cent goes to government.

The Minister of Trade and Industries, Dr. Kofi Konadu Apraku said one of the major constraints to industrial productivity in the country is lack of access to affordable capital, hence the EDIF initiative. He said government through the fund is hoping to help mitigate that problem.

He called on the banks to position themselves to play a pivotal role in stimulating industrial growth in the country. He said that inspite of all the efforts put in place to enhance the fund the acquisition processes of the banks "are not moving forward as quickly as we want it to be".

Dr. Apraku said the disbursement of the first loan was targeted for March but in view of the current trend, the advisory board of the ministry stalled it.

He said the fund is not for supporters of the government but for all; therefore every exporter could access it. Thirty-seven days after application has been received it would be processed and the person would be notified.

The Minister of Finance, Mr. Osafo Maafo said government wants EDIF to become operational; therefore the banks should streamline their procedures to boost the export sector. He added that government even when in opposition was committed to supporting the bill, which is now law (Act 582).

The later ministers held a close door meeting with representatives of the participating banks.