• About NowNewsgh.com
  • Absa determined to take the lead in sustainable Banking in Africa
  • Advertise with Us
  • All News
    • Absa determined to take the lead in sustainable Banking in Africa
  • Our Terms and Conditions
  • Privacy Policy
  • Youth unemployment can be solved by Academia and industry collaboration– Economist
Sunday, January 29, 2023
Now News Ghana
Advertisement
  • Business News
  • World
  • Tech
  • Sports
  • Sustainability
No Result
View All Result
  • Business News
  • World
  • Tech
  • Sports
  • Sustainability
No Result
View All Result
Now News Ghana
No Result
View All Result
Home Business News

Development Bank to address long-term funding and productive sectors of the economy.

DBG to address long term financing

May 21, 2021
in Business News, World
0
Development Bank to address long-term funding and productive sectors of the economy.

The Minister of Finance, Ken Ofori-Atta, has clarified the operations of the yet to be created Development Bank of Ghana (DBG). According to him, this will not be a deposit taking institution to mobilize funds from individuals and business consumers but will rather be made to lend to institutions, providing support for key sectors of the economy, particularly agricultural and real estate.  

Addressing the media at a short briefing in Accra following the recent loan agreement of 170 million euros between the government and the European Investment Bank, Mr. Ofori-Atta said DBG is a key pillar in the country’s efforts to quickly recover from the effects of the COVID-19 pandemic and quickly resume its economic transformation path as articulated in the Ghana CARES/Obantanpa Programme.

READ ALSO

Ghana Gas saves $3m monthly by replacing Chinese engineers-Dr Ben Asante 

30 OMCs licenses revoked for non-compliance

Explaining further, the Finance minister said DBG is a key pillar in Ghana’s efforts to quickly recover from the effects of the COVID-19 pandemic and quicly resume the country’s economic transformation path as articulated in the Ghana CARES/Obantanpa Programme. The new bank is intended to be a model institution that supports the financial system to play its role in supporting the private sector to expand and create jobs. DBG will help address two important constraints in our financial system, namely the lack of long-term funding, and the lack of adequate funding to the productive sectors of the economy.

Currently less than 15% of loans given out by banks are for 5 years or longer, making investment in long gestation project very difficult for our private sector. Agriculture and manufacturing sector receive around 4% and 8% respectively of banks loans compared to their shares in GDP and employment and potential for driving economic transformation.

Primary Focus Areas of DBG will be:

  • Agribusiness, with a focus on off-farm value-chain activities
  • Manufacturing
  • ICT, software, and allied services, including Business-Process Outsourcing, and Tourism
  • Boosting home ownership through affordable and longer tenure Mortgage Finance

DBG is not similar to the existing commercial banks that we have in the country. It is a non-deposit taking Wholesale bank.  DBG will neither give retail nor direct business loans, like the former Bank for Housing and Construction, NIB, ADB, and the like. It will rather provide funds to the existing commercial banks and other qualifying financial institutions to provide long-term lending and other innovative products that are presently lacking in the system. The bank will therefore complement and strengthen the operations of existing financial institutions.

It is important to state that since independence, this is the first time we are establishing a bank of this nature. It is a model along the lines of the German Development Bank – KfW, which played a pivotal role in the post-World War II reconstruction and transformation of the German economy. Through DBG, Government will be able to further strengthen its support to the private sector to spearhead economic growth and transformation. DBG is an instrument to ensure long term finance to the private sector on a sustainable basis.

Government therefore expects DBG to be a financially sustainable institution that is able to raise long term funds from the domestic and international capital markets and from international financial institutions, based on its own balance sheet. To this end, Government is taking pains to ensure that DBG has a strong governance structure with professional and independent Board and Management. A process to select the Board and Management on a competitive basis is currently underway.

source: Joynews

Source: joynews
Via: nownewsgh
ShareTweetShare

Related Posts

Ghana Gas saves $3m monthly by replacing Chinese engineers-Dr Ben Asante 
Business News

Ghana Gas saves $3m monthly by replacing Chinese engineers-Dr Ben Asante 

January 13, 2023
30 OMCs licenses revoked for non-compliance
Business News

30 OMCs licenses revoked for non-compliance

January 13, 2023
Alan Kyerematen resigns as Trade Minister
World

Alan Kyerematen resigns as Trade Minister

January 6, 2023
Bank of Ghana Takes Firm Control of Currency Market.
Business News

Bank of Ghana Takes Firm Control of Currency Market.

January 6, 2023
Young people must have a seat at the table – Rosy Fynn
Business News

Young people must have a seat at the table – Rosy Fynn

January 1, 2023
There are only ‘book engineers’ in Ghana – Constance Swaniker
Business News

There are only ‘book engineers’ in Ghana – Constance Swaniker

January 1, 2023
Next Post
E Amankwa Minka

Youth unemployment can be solved– Economist

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

50% of all women in relationships have a back-up partner in mind just in case – Study finds

50% of all women in relationships have a back-up partner in mind just in case – Study finds

June 7, 2020
Ghanaians blast Archbishop Duncan Williams for holding a demonic sword – Screenshots

Ghanaians blast Archbishop Duncan Williams for holding a demonic sword – Screenshots

May 28, 2020
Burundi President Pierre Nkurunziza dies of ‘cardiac arrest’ at 55

Burundi President Pierre Nkurunziza dies of ‘cardiac arrest’ at 55

June 9, 2020
Special police operation uncovers 3 headless bodies at fetish priest’s backyard

Special police operation uncovers 3 headless bodies at fetish priest’s backyard

May 1, 2020
7 trending pre-wedding photoshoot inspiration for 2020 couples

7 trending pre-wedding photoshoot inspiration for 2020 couples

July 23, 2020

EDITOR'S PICK

Here Are 10 Countries With Highest Population In The World

January 31, 2020
How to prepare Chinese fried rice

How to prepare Chinese fried rice

May 5, 2020
Ernest Kofi Abotsi appointed Dean of UPSA Faculty of Law

Ernest Kofi Abotsi appointed Dean of UPSA Faculty of Law

May 21, 2020
ECG blames recent outages on Saturday’s rainstorm

ECG blames recent outages on Saturday’s rainstorm

October 12, 2020

About

The NowNews Media is an online independent commercial company in Ghana.
The dream started in the late 80s, when the Founder established a small pirate FM radio in the Swanlake area in North Kaneshie , popularly called ISSAFM on 88.9FM with scraps and parts of discarded radio and Tv systems, as a radio and Tv repairer.

Follow us

Categories

  • AgriBusiness
  • Banking and Finance
  • Business News
  • Entertainments
  • Florian Gray-Business PR
  • Global Health
  • Health tit-bits
  • mining
  • National News
  • Newspaper Headlines
  • Opinion
  • Sports
  • Sustainability
  • Tech
  • World

Recent Posts

  • Ghana Gas saves $3m monthly by replacing Chinese engineers-Dr Ben Asante 
  • 30 OMCs licenses revoked for non-compliance
  • Alan Kyerematen resigns as Trade Minister
  • Bank of Ghana Takes Firm Control of Currency Market.
  • About NowNewsgh.com
  • Absa determined to take the lead in sustainable Banking in Africa
  • Advertise with Us
  • All News
  • Our Terms and Conditions
  • Privacy Policy
  • Youth unemployment can be solved by Academia and industry collaboration– Economist

© 2020 Now News Ghana - All Rights Reserved

No Result
View All Result
  • Home
  • Business News
  • World
  • Sports
  • Tech
  • Sustainability
  • Ghana Book

© 2020 Now News Ghana - All Rights Reserved