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Month: August 2021

Improved Lending To the Private Sector Will Lead To Growth

3news.com | 8/24/2021

A Financial Expert with Dalex Finance Mr Joe Jackson has agreed with President Nana Addo Dankwa Akufo-Addo’s call for the Bank of Ghana to work to reduce lending rate.

Mr Akufo-Addo has urged the central bank to  work to bridge the gap between the monetary policy rate and the lending rates of commercial banks.

If this is done, the president said, it will enhance the rapid growth of the country.

“Interrogate the issue of high-interest rates in Ghana, and how the problem should be addressed to enhance the competitiveness of the private sector in the country…I believe the Bank of Ghana is best placed to lead this process of reflection and action.

“This is a gap we have to bridge if we are to realise the vision of a Ghana whose economy is globally competitive,” he said when he swore into office the newly constituted 13-member board of the Central Bank at the Jubilee House, Accra, on Friday.

Commenting on this in a tweet, Mr Jackson said “HE NADAA, I agree that Bank Lending rates seem high.

“Could it be that Govt borrowing is crowding out lending to the private sector?

“If riskless Govt bonds are as high as 17.7% then maybe even the 21% lending rate to the private sector is low.”

The board, chaired by the Governor of the BoG, Dr. Ernest Addison, includes Dr. Maxwell Opoku-Afari, First Deputy Governor, Miss Elsie Addo Awadzi, Second Deputy Governor, Charles Kofi Adu Boahen, Minister of State, Finance Ministry, and Prof. Eric Osei Asibey.

The others are Dr Kwame Owusu- Nyantekyi, Dr Samuel Nii-Noi Ashong, Mr Jude Kofi Bucknor, Mr Joseph Blignam Alhassan, Mr Andrew Adinorte Boye-Doe, Madam Angela Kyerematen-Jimoh, Mrs Comfort Ocran and Madam Regina Ohene- Darko Adutwum.

2022 budget: Ghana is broke – Financial analyst Joe Jackson

Source : PulseGhana.com | 12/8/2021

According to him, Ghana spends 50% of revenue on interest payments and 55 % on salaries hence the introduction of the 1.75% electronic transactions which covers mobile money payments, bank transfers, merchant payments, and inward remittances.

The proposed E- levy if approved by Parliament will come into effect on February 1, 2022.

The tax has since been met with mixed reactions, with Ghanaians kicking against it and stressing that it will only place an extra burden on their finances.

The minority in parliament has also announced that it will not support approval for the proposal.

Joe Jackson speaking on the development said the country is broke.

In a Twitter post, he said “Ghana is still broke! We spend 50% of revenue on interest payments and 55 % on Salaries. Govt needs to increase tax revenue else we may not be able to even borrow more. Hence the proposed E-levy.”

Meanwhile, Ken Ofori-Atta, the Finance Minister has written a letter to the Speaker of Parliament over modifications of portions of the controversial 2022 budget following public reaction.

He said, though, consultations would continue with respect to the implementation of the E-levy but “The full consequences of not passing the budget are serious. This would imply that from January 1, 2022, for the government to continue work, we would need to obtain parliamentary approval to spend in advance of the appropriation either than that, the entire government would have to shut down which will mean to name a few, no salaries for almost 700,000 public sector workers including doctors, nurses, teachers, personnel of the security services and others.”

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