The National Development Bank (NDB) will start functioning by end of July this year, the Finance Minister, Ken Ofori-Atta has stated.
The Bank, according to him, will prepare long term wholesale financing to the private sector via Commercial banks.
The Minister stated this at a press briefing on Sunday to address issues that have been raised through the “Fix the country” campaign, saying, “By the end of July, we will have a National Development Bank capitalised with over $500 million that will provide long-term wholesale financing to the private sector through the commercial banks.”
The authorities in 2017 hinted of the establishment of a National Development Bank to offer innovative and long time financing devices for particular sectors of the economy, particularly, the agriculture and industrial sectors.
The move, the authorities mentioned would empower and develop many businesses in those sectors, making them vibrant and turning them into massive ones.
“The establishment of a National Development Bank under the Ghana Cares Programme is expected to provide support to businesses. As you might have heard, we have already raised US$500 million dollars for this,” he stressed.
For now, the World Bank Board of Executive Directors have approved $250 million from the International Development Association (IDA) to guide the establishment of the bank.
The $250 million help was expected to increase access to long time finance and improve job creation for about 10,000 enterprises in key sectors which includes agribusinesses, manufacturing and high value services.
“By offering long-term wholesale financing, credit guarantees, and other services, the Ghana Development Finance project will help increase overall lending to priority sectors and market segments,” the World Bank Country Director for Ghana, Sierra Leone and Liberia, Pierre Laporte said.
“The project is aligned with government priorities outlined in the Coordinated Programme of Economic and Social Development Policies and is an integral part of the World Bank Group’s efforts to promote sustainable growth in Ghana,” he added.
On the health of the economy, the minister stated the authorities was placing additional measures in place to ensure that the current challenges confronting it have been resolved. He stated the COVID-19 had negatively impacted authorities’s economic targets however assured that all was being done to offer more comfort for Ghanaians.