Ghana's bank lent less in 2013, says BoG
The Bank of Ghana (BoG) said on Wednesday (27 November) that the number of loans - whether granted to households, or small, medium and large enterprises - has decreased in 2013.The Bank of Ghana (BoG) said on Wednesday (27 November) that the number of loans - whether granted to households,
large enterprises - has decreased in 2013.
BoG Governor Kofi Wampah explained that the principal reasons cited for rejection of loan applications included poor credit history, low cash flow, weak management and weak financials.
A survey from the BoG also shows that for the first 10 months of 2013, broad money grew by 20.8 per cent, compared with 21.9 per cent during the same period last year. This, said the Governor, was largely due to a sharp slowdown in growth of foreign currency deposits, "even though this was moderated by increases in domestic currency deposits".
The pace of annual growth in private sector credit slowed to 25 per cent at the end of October 2013, compared to 44.3 per cent during the same period in 2012.
The Governor concluded by saying that the Bank will maintain its policy rate at 16 per cent, adding that the upside risks to inflation, though elevated, are mainly structural, and therefore do not need to be addressed by a policy rate adjustment at this time.