Minority Leader, Dr. Cassiel Ato Forson, has slammed the New Patriotic Party (NPP) government for challenges being faced by the banking sector.
According to him, some reckless policies implemented by the government have eroded the capital of some banks in Ghana.
He said the implementation of government’s Domestic Debt Exchange Programme (DDEP) is having a toll on the various banks making it impossible for them to lend to businesses.
In a tweet on April 29, the Minority Leader lamented, “I am deeply concerned about the current state of our banking sector, especially the impact of government policies on our local banks. It’s no secret that many of these banks, which are essential to supporting small and medium-sized enterprises (SMEs) in Ghana, are facing severe financial difficulties”.
“Under the leadership of Alhaji Bawumia, the Head of EMT, the NPP government has implemented policies that have seriously eroded the capital of most of our banks. This is having a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of our economy”.
Dr. Forson opined that stakeholders engage in some discussions on how to support local banks.
“I believe it’s time for a serious discussion about how we can support our local banks and help them weather this difficult period,” he suggested.
Background
Ghana’s move to restructure its local currency and overseas debt resulted in the first loss on record for two of the country’s top banks.
GCB Bank Plc, the country’s largest lender by assets, posted a GH¢593.4 million ($50.5 million) net loss for the year 2022.
According to Bloomberg, Standard Chartered Bank Ghana Ltd., the biggest by market value, also reported a loss of 297.8 million cedis.
Banks operating in West Africa’s second-largest economy have taken a hit of about $1.4 billion, according to Bloomberg calculations, as Ghana restructures most of its public debt, estimated at 576 billion cedis.
Read below Dr. Ato Forson’s tweet
folks,
I am deeply concerned about the current state of our banking sector, especially the impact of government policies on our local banks. It’s no secret that many of these banks, which are essential to supporting small and medium-sized enterprises (SMEs) in Ghana, are facing severe financial difficulties.
Under the leadership of Alhaji Bawumia, the Head of EMT, the NPP government has implemented policies that have seriously eroded the capital of most of our banks. This is having a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of our economy.
I believe it’s time for a serious discussion about how we can support our local banks and help them weather this difficult period.