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Business News of Wednesday, 23 August 2006

Source: GNA

Loan defaulting is a bane on rural banks - Ato Arthur

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Cape Coast, Aug. 23, GNA - Nana Ato Arthur, Central Regional Minister, on Tuesday observed that loan defaulting had been a bane on the smooth operations of most rural banks, resulting in some of them collapsing.

He therefore, warned loan defaulters that they would be prosecuted to retrieve the monies and sustain operations of the banks. Nana Arthur gave the warning when inaugurating an agency of Assinman Rural Bank at Pedu, a suburb of Cape Coast. The agency is the third to be opened since the bank with its headquarters at Assin Manso began operations 20 years ago. The other agencies are at Ajumako and Assin-Foso.

Nana Arthur called on managements of rural banks to be institute measures to ensure loan defaulters were punished to serve as a deterrent to others.

He urged the managements to be innovative and introduce products that would improve the economic base of their customers and attract new ones since Treasury Bills were no longer profitable.

Mr Ebenezer Osei Nsenkyireh, Chairman of the Board of Directors of the Bank, in an address read on his behalf underscored the importance of rural banks to the socio-economic development of their catchment areas and urged the community to take advantage of the bank's products. He said the bank had created job opportunities for the youth in enterprises like farming, poultry, livestock production and trading, through its mobile banking system popularly known as 'susu'. Mr Nsenkyireh said the bank had in addition, awarded scholarships to 30 needy but brilliant girls within Assin area.

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