Ato Forson slams government for challenges faced by Ghanaian Banks

Dr. Cassiel Ato Forson, the Minority Leader, has criticized the banking sector’s challenges and the New Patriotic Party (NPP) government’s policies, which he believes have caused the erosion of capital in some Ghanaian banks.

Dr. Forson specifically cited the implementation of the government’s Domestic Debt Exchange Programme (DDEP) as a major factor in banks’ inability to lend to businesses.

He expressed concern that many local banks, which play a vital role in supporting small and medium-sized enterprises (SMEs) in Ghana, are currently facing significant financial difficulties.

Dr. Forson called for discussions among stakeholders to find ways to support local banks during this difficult period.

“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,” he posted on Facebook.

“Under the leadership of Alhaji Bawumia, the Head of EMT, the NPP government has implemented policies that have seriously eroded the capital of most of our banks. This is having a devastating effect on their ability to lend to businesses, create jobs, and contribute to the growth of our economy.

“I believe it’s time for a serious discussion about how we can support our local banks and help them weather this difficult period”.

The restructuring of Ghana’s local currency and overseas debt caused GCB Bank Plc and Standard Chartered Bank Ghana Ltd. to report significant losses.

According to Bloomberg, banks operating in Ghana have suffered a total loss of about $1.4 billion due to the restructuring of most of the country’s public debt, estimated at 576 billion cedis.

Source: graphic online