Dr. Cassiel Ato Forson, the minority leader, has criticized the New Patriotic Party (NPP) administration for the problems the banking industry is facing.
He claims that several careless government measures have reduced the capital of some Ghanaian banks.
He claimed that the various banks are suffering as a result of the government’s Domestic Debt Exchange Programme (DDEP), which makes it difficult for them to provide loans to businesses.
In a tweet on April 29, the Minority Leader lamented, “I am deeply concerned about the current state of our banking sector, especially the impact of government policies on our local banks. It’s no secret that many of these banks, which are essential to supporting small and medium-sized enterprises (SMEs) in Ghana, are facing severe financial difficulties”.
Dr. Forson opined that stakeholders engage in some discussions on how to support local banks.
“I believe it’s time for a serious discussion about how we can support our local banks and help them weather this difficult period,” he suggested.
Background
Ghana’s move to restructure its local currency and overseas debt resulted in the first loss on record for two of the country’s top banks.
GCB Bank Plc, the country’s largest lender by assets, posted a GH¢593.4 million ($50.5 million) net loss for the year 2022.
According to Bloomberg, Standard Chartered Bank Ghana Ltd., the biggest by market value, also reported a loss of 297.8 million cedis.
Banks operating in West Africa’s second-largest economy have taken a hit of about $1.4 billion, according to Bloomberg calculations, as Ghana restructures most of its public debt, estimated at 576 billion cedis.