Editorial
It appears interventions by managers of economy to improve access to credit by businesses are just not yielding desired results. Enterprises are still having difficulties with accessing credit from banks, according to the latest Business Barometer Survey conducted by the Association of Ghana Industries (AGI).
The periodic opinion survey represents the views of business owners from October to December, last year. It cites low access to credit and high lending rates as the twin factors which are affecting the growth of businesses.
This is worrying, especially because of the continuous decline in inflation and Treasury-bill rates.
Well, the AGI President, Nana Owusu Afari, believes the banks are just not being innovative in their credit-delivery role. This notwithstanding, there might be more to it.
Meanwhile, the November 2011 Credit Conditions Survey of the Bank of Ghana revealed an overall net easing of credit stance for enterprises and households. According to the survey, the easing in credit stance was the result of a number factors including improved capital position, access to market financing and competition from other banks. However, access to credit by small and medium enterprises and for mortgages was tightened on account of increases in additional security requirements.
The survey further stated that credit to the private sector grew steadily into the last quarter of the year. By the end of October 2011, it had increased by GH¢1.7 billion, on a year-on-year basis, to GH¢7.9 billion. In real terms, credit flow to the private sector recorded an annual growth of 16.9%, compared to a decline of 0.2% a year earlier.
It is therefore a bit confusing to hear that the private enterprises, majority being members of AGI, complain of difficulties in accessing credit.
This raises eyebrows over the reports we receive from our institutions, be they private or public. Could it be that the institutions do not get the right information from their stakeholders?
It is high time institutions consulted each other, as well as properly conducted surveys, which would be wholly accepted by all and not just by a few.
This is not the first time that reports from separate institutions are contradicting each other. Going forward, we hope that these simple misunderstandings could be rectified.
It appears interventions by managers of economy to improve access to credit by businesses are just not yielding desired results. Enterprises are still having difficulties with accessing credit from banks, according to the latest Business Barometer Survey conducted by the Association of Ghana Industries (AGI).
The periodic opinion survey represents the views of business owners from October to December, last year. It cites low access to credit and high lending rates as the twin factors which are affecting the growth of businesses.
This is worrying, especially because of the continuous decline in inflation and Treasury-bill rates.
Well, the AGI President, Nana Owusu Afari, believes the banks are just not being innovative in their credit-delivery role. This notwithstanding, there might be more to it.
Meanwhile, the November 2011 Credit Conditions Survey of the Bank of Ghana revealed an overall net easing of credit stance for enterprises and households. According to the survey, the easing in credit stance was the result of a number factors including improved capital position, access to market financing and competition from other banks. However, access to credit by small and medium enterprises and for mortgages was tightened on account of increases in additional security requirements.
The survey further stated that credit to the private sector grew steadily into the last quarter of the year. By the end of October 2011, it had increased by GH¢1.7 billion, on a year-on-year basis, to GH¢7.9 billion. In real terms, credit flow to the private sector recorded an annual growth of 16.9%, compared to a decline of 0.2% a year earlier.
It is therefore a bit confusing to hear that the private enterprises, majority being members of AGI, complain of difficulties in accessing credit.
This raises eyebrows over the reports we receive from our institutions, be they private or public. Could it be that the institutions do not get the right information from their stakeholders?
It is high time institutions consulted each other, as well as properly conducted surveys, which would be wholly accepted by all and not just by a few.
This is not the first time that reports from separate institutions are contradicting each other. Going forward, we hope that these simple misunderstandings could be rectified.
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