Twenty companies have been shortlisted by the Ministry of Trade and Industry to receive stimulus package in various amounts by the end of April, 2018.
This is the assurance from the Ministry of Trade and Industry.
According to the ministry, it has so far released over 141 million cedis to a total of six companies out of the eighty three companies that applied for the stimulus package.
In an interview with Citi Business News, Public Relations Officer for the Ministry of Trade and Industry, Prince Boakye Boateng was hopeful the funds will help restore the financial strength of the companies.
“Six companies have received varying packages ranging from GHc2,64,000 to as high as GHc56,000,000. So far, about GHc141, 240,000 has been disbursed”.
He added that at the end of the month 20 more companies will receive their stimulus package.
“At least 20 companies would have received their packages by close of April. This number will add to the six companies that have already received their packages”.
Mr. Boakye explained that in order to increase accessibility to the funds the Trade Ministry released the funds by partnering with some banks at an interest rate of 10 % to the companies, while the remaining cost was absorbed by government.
“We had to ensure that as many companies as possible benefit from the stimulus package and so what we did was that instead of disbursing the allocated money to a few of the companies that have applied, we decide to widen the net and let the companies deal with the banks so that as many people as possible can benefit from it.
“What government will do is to renegotiate the interest rate. So far, we have been able to get them to cap the interest rate at twenty percent which is far better than the prevailing interest rate and out of the twenty percent government will take care of ten percent as stimulus”.
Government intervention for distressed companies
Among the numerous interventions by the NPP government to make local businesses more competitive, is the provision of financial support to some distressed businesses in the private sector.
Private sector businesses had earlier impressed on the government to make its stimulus package for businesses available by the end of June in 2017.
By: Anita Arthur/citibusinessnews.com/Ghana