The Minister for Finance, Mr. Ken Ofori-Atta, has pointed out that his Ministry and the government have restored confidence in the banking system, and securing the otherwise distressed deposits of some 2,655,100 customers, as well as saving over 3,000 jobs.
Presenting the Mid-Year Fiscal Policy Review of the 2019 Budget Statement and Economic Policy, the Finance Minister stated that total banks’ assets have shot up to GH¢112.8 billion.
He stated on the floor of Parliament that the growth of credit to the private sector rebounded assuredly by 16.8 percent in June 2019.
Mr. Ofori-Atta added that the government managed to set up the Consolidated Bank Ghana (CBG) Limited, and capitalised it with GH¢450 million after the banking sector was mismanaged by the previous government.
He indicated at the Plenary that CBG has released funds, totaling GH¢530 million, to Cocobod for cocoa roads.
Mr. Ofori-Atta reiterated that the government has provided a funding of GH¢11.2 billion to secure depositors’ funds in the failed banks, and that the Ghana Amalgamated Trust has provided funds, to capitalise solvent indigenous banks that were struggling to meet the enhanced minimum paid-up capital of GH¢400 million.
He stated that the government recently provided an additional GH¢925 million for payouts to small depositors of some 386 microfinance institutions.
“All key indicators for building a stronger economy have been cured effectively and are stronger now than they were thirty-one months ago. Inflation has dropped to single digit and dropping, interest rates continue to drop, external payments position has strengthened, exchange rates have been more stable, the fiscal deficit has reduced to below 5 percent real Gross Domestic Product (GDP) growth has rebounded and remains robust and the debt to GDP ratio is below 60 percentage”, he added.
Source: GhanaJustice/S.Ayisi
