Mr Ken Ofori-Atta, Minister of Finance said the government is working with the Banking Community to launch a GH¢2 billion credit and guarantee scheme in 2020 to cushion the banking sector.
The initiative would in particular, be structured to incentivise banks to lend to private sector at discounted lending rates.
“The scheme, which will start in the first quarter of 2020 will be targeted at specific industries such as agribusiness, manufacturing, hospitality, tourism and the tech-sector amongst others.
Mr Ofori-Atta announced this on Wednesday when he presented the 2020 Budget Statement and Economic Policy to Parliament in Accra.
Outlining initiatives that would be undertaken next year to boost private sector growth, he said there would be the establishment of Enterprise Credit Scheme (ECS) that would ensure a reasonable level of lending rates.
“In 2019, government engaged many stakeholders with respect to access to credit for the private sector. Experts went across the length and breadth of the country to meet with SMEs and artisans, proprietors and associations to get a better understanding of the challenges they face in accessing credit, while the Ministry also engaged the AGI, Banker’s Association, among others prior to this year’s budget,” he said.
He said “Through evidence-based research and field engagements with over 40 business associations, credit needs of micro, small and medium enterprises in the country, the government is ready to take advantage of the macro gains, and enhanced social cohesion through our social intervention initiatives to focus on private sector growth, home ownership and infrastructure development, including toll roads.”