Govt Reduces Credit From BOG

Dr. Paa Kwesi Ndoum, Minister of Economic Planning and Regional Co-operation has stated that the government is making frantic efforts to reduce borrowing from the Bank of Ghana to enhance economic development.

He said the move would bring down high bank rates and inflation, which companies and industries are facing.

Dr. Ndoum said this on Tuesday at the inauguration of the Central Regional branch of Association of Small Scale Industries (ASSI) and Credit Unions at Agona Swedru.

He said some companies and industries, which last year declared loses due to unfavourable economic conditions, have started enjoying huge profits because of better economic strategies adopted by the government.

The Minister assured Ghanaians that stabilisation of the cedi would not be a "nine day wonder", but it would continue for as long as measures put in place were pursued.

He said that the Highly Indebted Poverty Country(HIPC) initiativeis yielding fruitful results adding that Ghana's main creditors have cancelled the debts

owed them Dr. Ndoum said the government would soon launch a programme on poverty reduction in four regions, Upper West and Upper East, Northern and Central regions.

He said the "Emergency Social Relief Programme", launched recently by President John Agyekum Kufuor to assist farmers and fishermen, has taken off adding, that the government would soon take delivery of 300 outboard motors and nets for distribution to fishermen in Greater Accra and Central regions.

Dr. Ndoum assured small-scale industrialists that the government has directed commercial banks to provide credit facility to the private sector to boost their business.

Mr. Frank Quesih, Chairman of ASSI appealed to the Agona District Assembly and chiefs to release lands for the establishment of a industrial village.

He suggested that to ensure repayment of the Poverty Alleviation Fund (PAF), the association's credit union be allowed to disburse it.

Mr. John Agyabeng, District Chief Executive (DCE) for Agona assured members that the assembly would acquire land for them for the industrial village.

Mr. Samuel Obodai, Member of Parliament (MP) for Agona West, said the government would continue to give support to the private sector, which is an engine of growth.

He advised the executives to allow probity andaccountability to be their watch-word.