The Institute of Statistical, Social and Economic Research (ISSER) has advised the government to be strong on the regulatory requirements for the establishment and operation of the National Development Bank (NDB) which is yet to be commissioned.
During a lecture at the ISSER National Development Dialogue, the Director of ISSER, Professor Peter Quartey indicated that the progress of the National Development Bank will be based on prudent strategies as well as avoidance of political interference.
As a result, he requested that the Ministry of Finance (MOF) should set all the necessary measures to prevent further collapse of the bank.
However, the Director of the Financial Service Division of the Ministry of Finance (MOF), Mr. Samson AKligoh stated that the ministry has developed a firm regulatory atmosphere to ensure that the bank operates without direct government involvement.
Addressing the audience at the Development Dialogue on the theme ‘National Development Banks and Sustainable Financing in Ghana,’ Mr. Samson Akligoh further explained that this was the reason why the establishment of the NDB failed to go to parliament for scrutiny and approval, but through the Registrar General’s Department.
“For the first time we are establishing the National Development Bank without going to parliament with an act, just because we want to avoid any direct interference from political or public service authority, but an independent form of operations. Therefore, we rather did it through the Registrar General’s Department to strengthen the regulatory environment for the operations.”
Samson Akligoh
According to the Director of the Financial Division at Ministry of Finance, the plan to avoid the direct interference of Parliament is to ensure the absolute independence of the bank.
Also, he guaranteed that the Ministry of Finance is adopting strategies from international best practices.
The National Dialogue conference gave an opportunity to stakeholders to discuss the importance of the establishment of the new National Development Bank.
Furthermore, even though the Chairman for the Dialogue, Professor Ernest Aryettey was in favor of the creation of the National Development Bank, he advised that there should be more stakeholder engagements in order to ensure the bank’s successful operations.
Meanwhile, other speakers at the Development Dialogue petitioned the government to use the bank to support specific sectors of the economy, particularly the agricultural sector to promote growth.
$500 million capital for NDB
Few months ago, the Minister of Finance, Ken Ofori-Atta, announced the creation of the National Development Bank under the ‘Ghana CARES Program’.
According to him, the development bank will support the private sector through Commercial Banks by providing long-term financing.
Hon. Ken Ofori-Atta indicated that government has been able to raise the seed capital required for the development bank to fully commence operation.
“The establishment of the National Development Bank under the ‘Ghana CARES Program’ is expected to provide support to business. As you might have heard, we have already raised 500 million US dollars for this.”
Ken Ofori-Atta
The Minister of Finance added that “as you know, the cost of the borrowing has come down and he [President Akuffo-Addo] will try to drag it down to single digits. As your President says, access to capital and the foreign exchange regime has been relatively stable and quite a miracle especially in this year when we had about 2.6 percent to 2.9 percent”.
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