The Bank of Ghana (BoG) has issued a firm reminder to borrowers nationwide to fulfill their loan repayment commitments and utilize credit facilities strictly for their designated business objectives. Matilda Asante-Asiedu, the Second Deputy Governor, highlighted during a sensitization workshop for the Ghana National Chamber of Commerce and Industry that financial accountability is the cornerstone of a stable economy.
She specifically advised entrepreneurs against diverting business capital toward personal luxuries, explaining that reinvesting loans into business operations is the only sustainable way to eventually afford personal assets.
The central bank’s focus remains on the Borrowers and Lenders Act, which seeks to clarify the legal rights and responsibilities of both parties. By ensuring borrowers understand the contracts they sign, the BoG hopes to reduce the rate of non-performing loans, which often stem from the misapplication of funds. This educational push coincides with a period where the central bank is working to lower the overall cost of borrowing to stimulate industrial growth.
In response, the President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, acknowledged the downward trend in interest rates but pointed out that affordability is irrelevant without accessibility.
He argued that even as credit becomes cheaper, many businesses still struggle to secure the necessary capital from banks. He urged the BoG to complement its efforts in reducing interest rates with policies that ensure financial institutions are actually willing and able to lend to the industrial sector.
