President Nana Akufo-Addo has launched the $750 Development Bank Ghana (DBG).
He said DBG will support all banks in the economy to have access to long-term funds, including the National Investment Bank, the Agricultural Development Bank and the Ghana Exim Bank.
It will also support private equity funds, and other capital market firms to have access to the bond market, and facilitate equity financing for SMEs.
Additionally, it will partner research institutions to undertake sector research, and support innovation centres and business accelerators.
It will ensure that the requisite capital is directed towards business ideas with the most potential for growth and job creation, under the financial services ecosystem.
Speaking at the launch, President Akufo-Addo cited findings by Pricewater House Coopers which show only 11% of loans are long term, hence the need to set up DBG to step in and offer long-term loans.
The president assured the Board and Directors that government will not interfere in its decision-making process.
This, he said, will guarantee its independence of operations and enable it to work professionally and efficiently.
The President charged the bank to use its strong financial backing to support the growth of the Private sector and help create high-quality jobs.
The Minister of Finance, Ken Ofori-Atta, who was also present at the launch, asked the bank to work hard to achieve international ratings.
Governor of the Bank of Ghana, Dr Ernest Addison, said the Central Bank will ensure effective regulations of the banking sector.
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