Events

Recruitment of hundreds of youth to USA start in Tema

 

Bank Exchange Rate, November 21, 2006

 

2007 Budget Highlights

 

GDP rises to 6.2 per cent

 

An evening of honor for H. E. Ellen Johnson Sirleaf and the Africa Prize

 

When Grandpa turned 70 (Yaw's story)

 

Ghana Wesley Methodist Church, USA, mourns with the Asafu-Adjayes

 

2006 Ghanaian Women's Courage Awards (Canada)

 

Ovation for Secretary General Annan

Ghanadot.com

 

Pictures of the Asantehene's visit to Morocco

Ambassador Fritz Poku Retires
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In This Issue...Links to the NewsMarch 11, 2016

Kufuor expresses worry over banks' slow response to declining macroeconomic indicators

Accra, Nov. 21, GNA - President John Agyekum Kufuor is worried over the slow responsiveness of financial institutions especially the banks to reduce the lending rates given the overall improvement in macroeconomic indicators.


Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, who announced this on Monday said: 'His Excellency is particularly pained that the banks in particular have not quickly responded to the declining macro economic indicators for the greater public good and to move the growth agenda forward as expected.'


Presenting a paper to open the 10th National Banking Conference Lecturers in Accra on the theme: The Impact of Banking and Financial Services Industry on the Country's Economic Development' he said President Kufuor was not happy about the slow decline in lending rates to the private sector as well as the high cost of operations of the banks compared to international practices.


The Minister said a cursory look at macroeconomic and financial indicators generally attested to the worrying thoughts within the financial sector.


'Despite consistent declines in the prime rate from 18.50 per cent in 2004 to 14.5 per cent as at date, lending rates are still sticky downwards despite increased liquidity of banks due to the abolishing of the secondary reserves requirement,' he said.


Assigning some possible reasons to the slow responsiveness in the past, Mr Baah-Wiredu cited the cushion or premium cost inefficiency in operations due to huge mismatch of assets and pricing for a long period of time, crowding-out by government and lack of collateral and other credit requirements by banks.


He said the circumstances had changed but realigning operating cost downwards to match declining income from their assets had become a mirage and a short term uncertainty.


In addition the Minister mentioned psychological fear and uncertainty as other factors which by themselves were risks and therefore preventing the banks from positively responding to the already established favourable macroeconomic indicators as at now.


He said there were still about 40 per cent of cash with the non-banking public outside the banking system thereby affecting the rate of diversifying income creation by banks.


Mr Baah-Wiredu said the Government was determined and committed to support and reforms the financial sector to be the key driver for the private and the other sectors of the economy to offer and deepen pro-private sector policy initiatives as well as institutional and legal and regulatory framework.


GNA

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Public Servants to enjoy enhanced salary from January 2007 

 

GNA - Come January 2007, all Government workers will see an upward adjustment in their pay compared to the wages and salaries levels that pertained in 2006, Dr Paa Kwesi Nduom, Minister of Public Sector Reform, announced on Tuesday........More

 
 

Kufuor calls on SSNIT to shift from conserving to investing
 

GNA - President John Agyekum Kufuor on Tuesday asked the Social Security and National Insurance Trust (SSNIT) to open up and venture into strategic and profitable investments to help to grow its capital and the country's economy.... More

 

Students Loan Trust Fund commences this academic year

GNA - The Students Loan Trust Fund (SLTF), which would replace the Social Security and National Insurance Trust (SSNIT) Students Loan Scheme, would start operating in the 2006/2007 academic year, Mrs Kokui Adu, Acting Chief Executive Officer of the Fund, announced at a press briefing on Tuesday..

....More

 

 
 

There is a fraud company out there that can access the sim card on your mobile phone..

 

Ghanadot:  If you receive a phone call on your mobile from any person, saying that, he or she is a company engineer, or telling you that they're checking your mobile line, and you have to press #90 or #09 or any other number. End this call immediately . ....More

 

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