President of Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Mr.Paul-Kwabena-Amaning, has heaped praises on the President Akufo-Addo led administration for securing a bank loan to revitalize the country’s economy.
The Ministry of Finance and the European Investment Bank signed an agreement for the provision of a €170 million facility for the establishment of a new national bank, the Development Bank Ghana (DBG) on Wednesday, May 19, 2021.
DBG is an integral feature of the GH¢100 billion Ghana Cares ‘Obaatampa’ Project, which is seeing the revitalization of the Ghanaian economy following the onset of Covid-19.
The €170 million facility, according to the President of the European Investment Bank, Dr. Werner Hoyer, is the largest facility provided by the international bank for the establishment of a development bank in Africa or for any other project, for that matter, on the continent.
The loan acquisition has received heavy criticism from a section of the public with many wondering why the establishment of another bank after the banking sector clean-up.
Activist Kwame Asare Obeng shares the same sentiment and asserts securing such a loan is preposterous owing the government spent millions to embark on the infamous clean-up.
“You spent over close to 21 billion Ghana cedis to collapse banks that needed about 9 billion to survive and later borrow 170 million euros to establish a new national bank when you already have NIB which is struggling, ADB which is struggling, GCB Bank, and CBG.
Ghana beyond aid but you are borrowing money to start a national bank,” said the activist on Facebook.
But Mr. Paul Kwabena-Amaning, who’s a communications team member of the governing New Patriotic Party (NPP) holds a contrary opinion.
Speaking to Kwaku Owusu Adjei on Adwenekasa on Original 91.9FM on Friday, May 21, 2021, Kwabena-Amaning said the establishment of the bank is very important for the development of the country hence it should be welcomed.
He explained that currently, Ghanaian banks give short-term loans which are fraught with risks but the Development Bank Ghana’s pledge to give long-term loans in its bid to revitalize the economy will be advantageous to business persons interested in investing in the farming industry.
“Let’s take commodities or crops like the six tree crops. Which is – Oil palm, rubber, mango, cashew, coconut, and shea. If we are given $1 billion we can repay in ten years. These crops can help transform the country when you apply for a loan from Agricultural Development Bank Ghana (adb), they don’t give long-term loans. Ghana Commercial Bank will not approve such a loan because their monies are deposits of their clients and in Ghana when one deposit he or she withdraws it the next day.
GIFA gives no direct loans. It gives loans through adb. They make a proposal to adb that they will give them [farmers] guarantee,” he said on Original 91.9FM.
He further added “We have some crops which you could repay the loan after three months but others you can’t. Like the ones I mentioned if you plant it and want a long-term factory it will take you time, so, you need a loan you wouldn’t be pressurized to repay just like the intention behind the establishment of the Development Bank Ghana.”
Mr. Amaning also indicated that when the bank commences its operation it will boost the country’s agricultural sector.
“If they make available the loan I can process the raw materials. Definitely, I will buy the materials from the farmer in effect both the farmer and I will benefit from the establishment of the bank.
“The problem facing the agricultural industry in this country is after production there’s no buyer,” he stated.
By: Bernard Ralph Adams | Originalfmonline.com | Ghana