Benjamin Dzoboku, Managing Director of Republic Bank Ghana PLC
Ghana’s decision to turn to the International Monetary Fund for financial support is expected to increase the ability of banks to increase lending support for critical sectors of the economy.
This is according to the Managing Director of Republic Bank Ghana PLC, Benjamin Dzoboku.
Speaking in an interview with Citi Business News, Mr Dzoboku said
Read full articlethe potential economic support from the Bretton Woods institution will help boost investor confidence among banks and lending support to the private sector.
“This move to me is in the right direction because aside from policy credibility, the move will encourage lots of capital back into Ghana to help stabilize the foreign exchange market where the banks play. It will also help restore investor confidence causing offshore investors to return to the local money and capital markets."
“The current interest rates that keep going up will also begin to normalize with the inverse yield curve correcting. All of these will help Banks meet their obligations to assist individuals and businesses as well as the growth of the economy,” he added.
Over the years, it has become difficult for some banks to lend to the private sector due to high interest rates while certain loans taken from banks to undertake government projects are still to yet to re-paid.
In the wake of the current economic crisis, government decided to turn to the IMF for an economic support programme to sustain the economy.
MA/FNOQ
