Access to credit difficult – Report

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• Tetteh Nubuor 8 years ago

  I am very surprised that it is the World Bank realizing this anomaly. I have sounded this alarm bell several times that the central government doesn't have to compete with the private sector for the limited credit on the loca ...
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  I am very surprised that it is the World Bank realizing this anomaly. I have sounded this alarm bell several times that the central government doesn't have to compete with the private sector for the limited credit on the local financing market. When that happens interest rate is hiked because there is so little available credit for the banks to lend to the private sector.
  The government has to trim its bloating payroll especially the public sector and many government agencies which is in actual fact disfunctional and unproductive.
  As a result of the government's own
  fiscal indiscipline is driving up inflation.
  When the recurrence bills are cut there will be enough credit available to the private sector which is the engine of growth for every emerging market economy. The private sector in creating job opportunities and producing will increase the state coffers through taxes because the economy would be expanded, drive and thrive.

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• Joe Turkey 8 years ago

  Perhaps, it is only in Ghana that government directly and indirectly competes with businesses on the credit market. If banks are offering depositors peanuts for deposits and government issues cedi-denominated bonds at 25 to 3 ...
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  Perhaps, it is only in Ghana that government directly and indirectly competes with businesses on the credit market. If banks are offering depositors peanuts for deposits and government issues cedi-denominated bonds at 25 to 30% coupons, there is no incentive for banks to look anywhere else for profits. At the same time, government and the Bank of Ghana (if they are any different in Ghana), have no regulatory caps on the amount or percentage of deposits that banks can invest in these reckless bonds. With corrupt John Mahama in power, clueless accountant Tekper and impotent Wampah at the helm of affairs, time will come when some of the banks will have no need to even have any loans departments. Unemployment will continue to rise, the cedi will continue to fall and this country will be grounded to a halt. The more scary part is, with elections looming, these loans will be used for political campaigns, useless inflated political projects and the rest will go into individual pockets. Just wait until mid-June 2016 and watch what happens to the Ghanaian cedi.

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• Obrefo 8 years ago

  This incompetent corrupt regime is vacuuming every cedi from our banks at 25% rate and you expect much left to be loaned to the private individuals, business men and women. The irresponsible borrowing by this corrupt incompet ...
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  This incompetent corrupt regime is vacuuming every cedi from our banks at 25% rate and you expect much left to be loaned to the private individuals, business men and women. The irresponsible borrowing by this corrupt incompetent administration is the main reason why the rate of borrowing is still high. It's not good for the economy of Ghana. You can't eat your eggs and expect to have chicks at the same time.

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