Managing Director of Republic Bank (Ghana) PLC, Benjamin Dzoboku has stated that Government’s decision to go to the International Monetary Fund (IMF) to seek for economic assistance will go a long way to help increase the ability of banks to increase lending to priority sectors of the economy.
Despite, data showing that many sectors of the economy are recovering from the pandemic, businesses are still grappling with cashflow as they are unable to honour their loan obligations because of the challenging economic conditions.
Also, most private sector loans taken from banks to undertake government projects have still not been paid.
In an interview with Citi Business News, Managing Director of Republic Bank (Ghana) PLC, Benjamin Dzoboku said the move will boost the confidence of banks and ensure they lend more to the private sector.
“This move to me is in the right direction because aside from policy credibility, the move will encourage lots of capital back into Ghana to help stabilize the foreign exchange market where the banks play. It will also help restore investor confidence causing offshore investors to return to the local money and capital markets.
The current interest rates that keep going up will also begin to normalize with the inverse yield curve correcting. All of these will help Banks meet their obligations to assist individuals and businesses as well as the growth of the economy,” he said.