Awudome gets rural bank

Tsito (V/R), Feb 23 GNA-- Mr. Joseph Kwaku Nayan, the Deputy Volta Regional Minister, has observed that the rural banking system is to create Micro Credit facilities which would serve as the bedrock for economic development and poverty eradication.

In order to achieve this goal, people who have benefited from loan facilities disbursed under various micro-credit programmes of the government but have defaulted in payment should endeavour to pay back such loans.

Mr. Nayan made these remarks when he inaugurated the Butawu Rural Bank at Tsito.

The Bank would serve the people of Awudome and Abutia Traditional areas, which hitherto had no banking facilities.

He reminded the beneficiaries of such loans that it was only through the repayment that the scheme could be sustained. He said the successful operation of the bank would go a long way to complement government efforts of improving the rural economy through wealth creation and poverty reduction and through interventions such as the Community Based Rural Development Project, the National Youth Employment Programme and Micro Credit to farmers.

Mr, Nayan observed that many Rural Banks in the country had gone bankrupt due to mismanagement He therefore urged the people to develop the culture of savings and do business with the bank to sustain its operation in the area. He hoped the opening of the bank would help provide employment opportunities for the people in the area adding that through the granting of credit facilities business in the area would expand and the cumulative effect will be a better life for the people.

The Deputy Regional Minister advised the Board of Directors of the Bank to help run the bank in the most efficient and effective way to enable the bank to achieve its set objectives He further advised the youth in the two traditional areas to take advantage of the Bank to work hard and create wealth and transform their lives positively.

Mr. Fredrick France, Head of Banking Supervision Department Bank of Ghana, admonished the Directors of the Bank to ensure that only qualified and proven personnel with high integrity and honesty were allowed to work at the bank.

He announced that the Bank of Ghana would soon start imposing penalty units on Rural Banks that breach the provision of the Banking Act, 2004(Act 673).

Mr. France said as part of risk based supervisory regime, the Central Bank would soon carry out snap checks on loan performance in Rural and Community Banks to ensure proper loan administration and compliance with Bank of Ghana directives.

Mr. Duke Osam-Duodu, Deputy Managing Director ARB Apex Bank Limited, charged the Bank to introduce products that would speed up its deposit mobilization drive and in due course, make credits available to the people who are engaged in various economic activities especially in agriculture.

He urged them to take advantage of the Cedi Re-denomination exercise, which is about to be introduced as a platform to launch its deposit mobilization drive.

"Take advantage of the programme and open accounts with zero balances for all people within your catchment area, this will make it easier for the people to change their monies into the new Ghana Cedi and also make the exercise a success," he stated.

Ms Elizabeth Ohene, Minister of State urged the people to patronize the Bank to enhance its operations.

Togbe Setsu the XII, Fiato of Awudome seized the opportunity to announce the acute shortage of water in the two traditional areas. He called on the Ho Municipal Assembly to help provide the people in the area with potable water. Togbe Setsu thanked the authorities for establishing the Bank and hope the people would embrace the facility and do business with it.