Banks in the country are optimistic of reducing the high Non Performing Loans recorded in the banking sector in 2016.
The Energy sector debt owed to banks is the major contributor to Non Performing Loans in the country.
Even though official figures are not yet out, it is projected that Non Performing Loans in the sector may go beyond 15 percent.
Speaking to Citi Business News in an interview the Managing Director of HFC Bank Robert Le Hunte was hopeful there will be a turnaround.
“I think 2016 had been a very difficult year for the banking sector and driven to a large extent by the high level of Non-Performing Loans which have the impact of freezing these loans”.
“I think this has impacted the whole sector and I think the level NPL in the industry is way above 15 to 20 percent with some above 20 percent,” he added.
Expressing optimism, Mr. Le Hunte stated that banks will design solutions in 2017 to have a rebound.
“We feel that we have taken sufficient measures that will allow us to look at 2017 in an optimistic manner. So we are cautiously optimistic about 2017,” he said.
By: Lawrence Segbefia/citibusinessnews.com/Ghana