Business NewsGeneral NewsPolitics

Stop excessive borrowing – Bank of Ghana warns serial debtors (video).

 

 

• Many businesses borrow from the banks and do not pay back

• It is for this reason that the Bank of Ghana Governor has asked these serial borrowers to refrain from such act

 

• Dr Ernest Addison charged the court to be proactive

The Bank of Ghana (BoG) Governor, Dr Ernest Addison, has issued a stern warning to serial borrowers who don’t settle their debts.

According to him, it is about time perpetrators especially businesses stop excessive borrowing so the banks can also invest in the private sector.

The uncalled for attitudes exhibited by these serial borrowers affects the decision of bank owners when it comes to lending.

“We are concerned that the banks are not investing in the private sector. Why they are not lending and properly intermediating and then, on the other hand, we are also concerned about the MPLs in the economy and this is really why the banks are being risk-averse into the private sector. If you look at the list of high classified loans and you see the type of enterprises that are in there, we have a problem. These are firms that we know but it appears that they have loans that are not performing and some of them have become serial borrowers and they do not service their debts. I think that culture has to be changed.”

 

• Many businesses borrow from the banks and do not pay back

• It is for this reason that the Bank of Ghana Governor has asked these serial borrowers to refrain from such act

• Dr Ernest Addison charged the court to be proactive

The Bank of Ghana (BoG) Governor, Dr Ernest Addison, has issued a stern warning to serial borrowers who don’t settle their debts.

According to him, it is about time perpetrators especially businesses stop excessive borrowing so the banks can also invest in the private sector.

The uncalled for attitudes exhibited by these serial borrowers affects the decision of bank owners when it comes to lending.

“We are concerned that the banks are not investing in the private sector. Why they are not lending and properly intermediating and then, on the other hand, we are also concerned about the MPLs in the economy and this is really why the banks are being risk-averse into the private sector. If you look at the list of high classified loans and you see the type of enterprises that are in there, we have a problem. These are firms that we know but it appears that they have loans that are not performing and some of them have become serial borrowers and they do not service their debts. I think that culture has to be changed.”

 

 

Send us your articles for publication via whatsapp +233545900000

Related Articles

Leave a Reply

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

Back to top button