Some financial analysts have lauded moves by government to create a single treasury account for all government account.
Finance Minister Ken Ofori-Atta, in his 2017 budget presentation hinted that bank accounts of all government institutions will be transferred to the central bank for easy management and monitoring to ensure proper alignment of cash inflows and outflows to improve the predictability of budget implementations and cash allocations.
Some indigenous banks in the country, however, argued that the move will be unfavorable to them as such accounts are valuable source of mobilizing funds.
Speaking to Citi Business News, the Chief Executive Officer of Dalex Finance Ken Thompson said government will be taking the right move by creating the treasury account.
“If the single treasury account is about holding all government’s account in one place then it makes sense because it never made sense to me that the government has money, gives financial institutions then the financial institutions lend the money back to the government,” he argued.
Outlining some benefits, Mr. Thompson stated that the account will also provide government an opportunity to know the amount of funds it holds at every point in time.
“In any case, the government always must have an overview of what it’s got and what it hasn’t so for me if that’s what it means then it makes sense” he said.
“The government should open a single treasury account, I support that but the government should also pay its debt because people owe the financial institutions and they have not been paid. This is very critical and it’s a big issue,” he added.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana