Coronavirus effects: Banks leading ‘healing’ efforts

Commercial banks in the country have announced a raft of interventions aimed at resuscitating the economy from the coronavirus scourge and to mitigate the impact of the pandemic on individuals and businesses.

The banks, working through its mother body, Ghana Association of Bankers (GAB), issued a statement on Monday detailing their soothing response to the plight of their clients amid the coronavirus pandemic.

Among the raft of reliefs include a two percent reduction on existing and new loans, tailored packages for clients and special loans of up to 3 billion cedis for pharmaceutical companies.

“As an essential service provider, banks view this call to duty as a service to country in times of need,” a statement issued the GAB stated.

As has been witnessed elsewhere, sustained contraction should be avoided to lessen the pain of any consequential economic downturn and we are able to play our part in that regard, it added.

The banks are also working out special loans to manufacturers of pharmaceutical products during the pandemic to enable them acquire critical medical equipment that will boost their production capacity.

“The GAB is in final stages of discussions with the central bank and the Finance Ministry and member banks to set up gross loans on preferential terms of up to GHS 3billion to pharmaceutical companies that decide to switch production lines,” the statement indicated.

For businesses and individual clients, the banks will be holding bilateral discussions with those with loan exposures to arrive at tailored solutions be agreed with their bankers.

“We note the real challenges facing the airlines and general transportation business, hotels and other tourism related businesses, shippers and our clients who are staff of these worst affected businesses,” the statement said.

As operators in the financial services industry, the banks pledged to monitor the impact of the virus on global health systems and supply chains and proffer the needed support.