Salim Yakubu Fari
Assessments carried out by Bank of Ghana (BOG) indicated that Banks continued to tightening credit conditions for long terms loans 65.06%, up from 64.20% in August.Net tightening of short term loans however remained unchanged at 55.0 percent.
Bank’s credit condition continues to point to tightening of credit to both enterprises and households. Small and Medium Enterprises (SME’s) access to credit was tightened marginally while access by large enterprises remained unchanged
In an interview with some bankers at the Bank of Ghana (BOG) they stated that as regards loan maturities, long term credits continued to be tightened while stance on short term credit remained unchanged. On price terms and conditions such as shortening of the maturity of loans of credit lines, and the requirement of additional loan covenants and collaterals continued to be employed to tighten credit stance.
In the two months ended October 2009, banks reporting net tightening of credit to enterprises moved up from 72.51% in the August 2009 survey to 72.63% in the survey of October 2009.
According to some bankers at the Stanbic bank Ghana Limited who spoke to Business Day said the Cost of Funds and expectations regarding economic activities Continued to be the most important factors cited by lenders for the tightening of credit stance.
“Risk relating to current performance of the Deposit Money Banks (DMBs) fifty largest borrowers also contributed to net tightening of credit stance competition from other banks did not result in easing of credit at October survey rebound”.
Credit stance was tightened through increases in margins on average loans to 56.22% from 55.23% and on riskier loans to 57.21% from 56.54%.
Non-prices terms and conditions, and a shortening of maturity of loans or credits lines, and the requirement of more loan contributed to the tightening of credit stance for two months ended October 2009.
Credit availability to small and medium sized enterprises also continued to be tightened.Net demand for loans by enterprises increased marginally in two months ended October 2009.Overall loan demand was 14.20% compared with 13.38% in August survey
According to the respondent Bank’s, the increased in demand for credit was mainly for inventories and working capital, and In terms of borrower size, large enterprises demand for credit inched up while small medium sized companies remain unchanged.
Thursday, February 11, 2010
President Project Foreign Inflow to $2billion
President Project Foreign inflows to $2billion
Salim Yakubu Fari
President J.E Atta Mills said, Ghana has experienced a healthy growth, registered some 300 projects in the non-mining and petroleum sectors with an estimated cash inflow of over US$700million.
He said if total inflows into the mining, petroleum and free Zone operations are included, it is estimated that investments into Ghana in 2009 alone would exceed US$2billion and the prospects for 2010 look even brighter.
“As a nation, we continue to have an insatiable appetite for investment in areas such as Oil and Gas extraction and related services, Infrastructure Expansion, Energy, Agriculture and Agribusiness, Tourism ,information and communication technology, manufacturing and Financial Services”.
He said agricultural continues to remain a major pivot around which our growth agenda is revolving because it will not only ensure food security but most importantly provide sustainable job opportunities.
“It is my expectation that there will be very constructive dialogue and sharing of experiences in the areas of managing oil, gas and mineral resources in light of Ghana’s discovery of oil and gas and the contribution of the mining sector to the economic development”.
The forum has come at a time that most African Countries are recovering from the shocks of international financial crunch, “I am certain that given the high level of participation, decisions taken will impact positively on our economies”.
“I therefore call upon business leaders present here and those that may follow the proceedings of the forum, to actively engage in a meaningful debate that will lead to finding solutions for many of our continent’s social economic and development challenges”.
President Mills stated that over the years, numerous efforts and initiatives have been made to bring about deeper economic integration, increased intra-Africa trade, and investments on the continent.
North America and the European Union remain the biggest trading partners of Africa with a cumulative share of exports exceeding 60 percent in 2007.
President of Togo Republic, Faure Essozimna Gnassingbe said the low intra-regional direct investment seems also to be attributed to several others factors, especially the absence of good transport and communication Infrastructure.
Gnassingbe added that the regional integration ought to have contributed through the pooling of resources and the development of local market, to stimulating production, trade, and investment.
President of Namibia, Hifikepunye Pohamba intimated that the combined effect of these factors is the overstretching of energy and other resources. In turn, this impacts negatively on our continent’s ability to achieve the ultimate objective of continental economic integration and development.
Salim Yakubu Fari
President J.E Atta Mills said, Ghana has experienced a healthy growth, registered some 300 projects in the non-mining and petroleum sectors with an estimated cash inflow of over US$700million.
He said if total inflows into the mining, petroleum and free Zone operations are included, it is estimated that investments into Ghana in 2009 alone would exceed US$2billion and the prospects for 2010 look even brighter.
“As a nation, we continue to have an insatiable appetite for investment in areas such as Oil and Gas extraction and related services, Infrastructure Expansion, Energy, Agriculture and Agribusiness, Tourism ,information and communication technology, manufacturing and Financial Services”.
He said agricultural continues to remain a major pivot around which our growth agenda is revolving because it will not only ensure food security but most importantly provide sustainable job opportunities.
“It is my expectation that there will be very constructive dialogue and sharing of experiences in the areas of managing oil, gas and mineral resources in light of Ghana’s discovery of oil and gas and the contribution of the mining sector to the economic development”.
The forum has come at a time that most African Countries are recovering from the shocks of international financial crunch, “I am certain that given the high level of participation, decisions taken will impact positively on our economies”.
“I therefore call upon business leaders present here and those that may follow the proceedings of the forum, to actively engage in a meaningful debate that will lead to finding solutions for many of our continent’s social economic and development challenges”.
President Mills stated that over the years, numerous efforts and initiatives have been made to bring about deeper economic integration, increased intra-Africa trade, and investments on the continent.
North America and the European Union remain the biggest trading partners of Africa with a cumulative share of exports exceeding 60 percent in 2007.
President of Togo Republic, Faure Essozimna Gnassingbe said the low intra-regional direct investment seems also to be attributed to several others factors, especially the absence of good transport and communication Infrastructure.
Gnassingbe added that the regional integration ought to have contributed through the pooling of resources and the development of local market, to stimulating production, trade, and investment.
President of Namibia, Hifikepunye Pohamba intimated that the combined effect of these factors is the overstretching of energy and other resources. In turn, this impacts negatively on our continent’s ability to achieve the ultimate objective of continental economic integration and development.
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