MP Commends BoG for GH¢2 billion Support Plan to SME

The Member of Parliament for Okaikwei Central, Patrick Boamah has commended the Bank of Ghana( BoG) for its decision to set aside two per cent of reserves of banks to cushion t Small and Medium-scale Enterprises (SMEs).

Mr.Boamah told Journalists in parliament on Tuesday, November 26, the BoG decision has the potential to boosting growth in the SME, which could create meaningful jobs for the youth.
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According to him, “the Bank, and I mean the Bank of Ghana is making available close to GH¢2 billion to interested banks who would want to help SMEs. This amount is going to help expand the economy and grow SMEs that in my view create the most employment within the economy.”

” It is a good step by the Central Bank and I commend the governor and his deputies for this important decision and I expect the banks to take advantage of this, ” the lawmaker added.

Early this week, Dr Ernest Addison, the Governor of the Bank of Ghana, disclosed that the Central Bank has set aside GH¢2 billion to finance the activities of SMEs in the country.

Speaking at the monthly meeting of Monetary Policy Committee (MPC), the Governor was reported to have stated that, “the Bank of Ghana is setting aside 2% of the banks’ primary reserve to support targeted lending to SMEs as part of the Enterprise Credit Scheme announced in the 2020 budget.

According to the Governor, ” these funds will be held at Bank of Ghana and will be available to banks that participate in the scheme.”

Dr Addison also explained the policy would ensure that BoG support and strengthen the growth of credit to the private sector.

“The Bank of Ghana will explore the possibility of setting a minimum loan to deposits ratio to ensure that more deposits mobilised by banks are channelled to viable private sector projects.

“The Bank of Ghana will hold further consultations with the banking industry to determine the impact of such a regulatory measure, and if warranted, determine the level of such a ratio and appropriate monitoring and enforcement mechanisms to promote its effectiveness,” Dr Addison said.

The BoG through the MPC also maintained the policy rate at 16 per cent.
These, among other prudent policies, Patrick Boamah said are an indication of a sustainable economy and jobs opportunities embarked by the Akufo Addo led government.
He urged business players, especially the SME to take advantage of the BoG policies and seek support to expand their businesses.

Source: therepublicnewsonline.com