Ghanaian government hopes to increase credit for businesses

The Ghanaian government hopes to increase access to credit for small and medium sized businesses by stepping up pressure on commercial banks to lower interest rates. Finance Minister Kwabena Duffuor described the high bank lending rates, which run at around 28 per cent per year compared to a Bank of Ghana key policy rate that has fallen to13.5 per cent, as “unacceptable”.

The Minister told a conference in Accra, “It came out clearly that overheads of the banks are going up astronomically and it's just not right. But they are doing it, hence the decision to sit down with them and look at the situation seriously”.
He said that the Finance Ministry would hold talks with the banks to ensure that they comply with the administration's policy to ease credit for businesses.

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© 2010 Menas Associates

Ghana given 'compliant' status in energy and mining sectors

Ghana has been awarded 'compliant' status, by the Extractive Industries Transparency Initiative (EITI), for improved transparency in the oil, gas and mining sectors. The new status is a reward for the government's transparency in disclosing payments it receives from companies extracting the country's natural resources.

EITI Board Chair Peter Eigen congratulated the Ghanaian government, the companies operating in the country and the civil society organisations that have supported Ghana in acquiring the new status. Speaking about the event, Eigen said, “the achievement of EITI Compliance status is well deserved and one that should spur on the country for strong management of the oil sector”.

The EITI is a group devoted to increasing financial disclosures in the oil, gas and mining industries. In order to obtain 'compliant' status, countries must complete a series of assessments of their disclosure and reporting practices.

Source: Joy Business

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