Banking consultant Dr. Richmond Atuahene has called on the government to provide more affordable funds to private sector players to help stimulate the country’s economy.
He stated that this approach would enhance the Gross Domestic Product (GDP) and promote economic stability.
During an Investment Dialogue on Citi TV, Dr. Atuahene pointed out that the government’s continued borrowing was risky, especially when the private sector was not competitive.
He told the moderator, Bernard Avle, that following this path would not guarantee the country’s economic recovery and could potentially lead to an increase in the unemployment rate.
“The governor said recently that credit in the private sector has declined in real terms by 10% because the government is just like a snake, this snake, I don’t know its name, it only swallows, swallows. He is taking money. What does he take the money for?”
“Let the private sector have cheaper funds to turn the economy. That is when the GDPs or you are talking about the economy, the stability, and everything will come. But you see if the government is borrowing and the private sector cannot compete then we are crowding out the business. And it is a very dangerous thing. There will be no recovery. And if the economy does not recover, unemployment will be very high. There will be no job creation…The reality is that there is so much unemployment and non-job creation in the country at the moment.”