Proparco and FMO grant $40 million to Access Bank Ghana for loans to businesses
Access Bank Ghana will receive a credit facility of $40 million (€31.3 million) over seven years from the Dutch Development Bank (FMO) and Proparco to boost access to credit for businesses.Access Bank Ghana will receive a credit facility of $40 million (€31.3 million) over seven years from the Dutch Development Bank (FMO) and Proparco to boost access to credit for businesses.
According to Proparco - a subsidiary of the French development agency dedicated to the private sector - this envelope "is part of the already strong momentum of support from Proparco to the Ghanaian banking industry, in a bid to facilitate the financing of companies in the country."
Access Bank Ghana, which started its operations in 2009, is focusing on businesses. They represent 95 percent of its customers, according to figures given by the Ecofin agency.
The Bank of Ghana (BOG) said a few months ago that the number of loans - whether granted to households,
large enterprises - has decreased in 2013.
BoG Governor Kofi Wampah explained that the main reasons for the rejection of loan applications included poor credit history, low cash flow, weak management and weak financials.
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.