Parliament debates principles of Credit Reporting Bill

Accra, Nov. 8, GNA-Parliament on Wednesday took the Credit Reporting Bill through second reading, the stage at which the principles of a Bill is debated.

The purpose of the Bill is to provide a legal framework for the licensing, operation and supervision of credit bureaus in Ghana, and seeks to establish the conditions for the formation, processing and storage and disclosure of credit information. Furthermore, the Bill is to provide the orderly development of a credit reporting system and to promote public trust in the credit bureaus operation.

The Finance Committee, in its report on the Bill noted that Ghana currently did not have a comprehensive and reliable credit information system available to lenders making them rely solely on borrowers for information. Due to this, financial institutions are unable to make informed and reliable decisions in relation to the allocation of credit. The lack of credit information system increases the risks of lending and causes financial institutions to provide less credit, thereby reducing the availability of credit for small and medium sized businesses. The Minority side mainly made the contributions to the debate on the Bill.

Mr Alfred Abayateye NDC-Sege, supported the Bill as a "new thing that would help give easy access to credit facilities," while Mr Henry Ford Kamel NDC-Buem, said the Bill had operated well in some advanced countries.

He said the operation of the Bill would reduce collaterals required by banks from investors and would also make the banks operate in a more scientific way.

Mr Dan Abodakpi, NDC-Keta, was of the view that the Bill was important because, the country needed to put in place safety mechanisms as its financial market grew.

The House adopted the Report on the Audit of the Accounts of the Office of the Auditor General. The Report on the 2005 Annual Report of the Office of the Internal Audit Agency was adopted.