$40m Available for Private Sector

The Minister for Private Sector Development, Mr. Kwamena Bartels has called on the private sector to access a $40 million credit facility his Ministry has secured to boost agro-processing and salt production industries. He said the facility from HSBC, Equator Bank and Webster of the USA is to be used for purchasing equipment and materials from the USA to be guaranteed by the EXIM Bank of the USA.

The Minister disclosed this in a press conference at the State House on Tuesday. He said his ministry has arranged for the first tranche of the $40 million facility to be placed with four local banks - National Investment Bank (NIB), Ghana Commercial Bank (GCB), SSB Bank and Agriculture Development Bank (ADB) - with each bank taking $10 million. The facility has between 6 months and 1 year moratorium, depending on the type of project, and is repayable over 5 years and carries an interest of average 8.5% per annum.

He said "having sourced this facility and placed it with the banks, it is now up to the private sector to apply for the facility by preparing their various Business Plans and presenting them to these various banks".

He asked the media to publicise the credit facility to reach all sections of the private sector, especially those in small-scale enterprises that face problems in accessing low interest or long-term credit.Mr. Bartels explained that the facility sourced from the HSBC Bank for which the government acted as a facilitator, is being provided to the banks concerned directly for the private sector. "We have been assured by the HSBC that depending on how the private sector accesses this facility, $100 million facility will be made available on similar terms to the banks for further on-lending."

He said his Ministry has secured a 7-year supplier's credit from Italy for cocoa processing machinery and equipment with two years moratorium, and a buy-back agreement for the products to be produced by the plant. "The Ministry has secured a 5 year supplier's credit also from Italy for tomato and pineapple processing, with 2 year moratorium with a buy-back agreement for pineapple concentrate to be produced by the plant." Mr. Bartels said next year his ministry will be unveiling other credit facilities which it has secured to support the private sector in various sectors of the economy, depending largely on the absorption rate of the first $40 million facility and the utilisation of the supplier's credit facilities from Italy. He said it is the expectation of the NPP government, that the private sector will take advantage of the initiatives to go into salt production and agro-processing to drive the economy forward so that the President's dream for the "Golden Age of Business" becomes a reality.

He expressed his appreciation to Mr. Kwamema Essilfie Adjaye, Economic Advisor to the President, and Mr. Kwame Semevor, Chairman of the Westminster Mortgage Finance Limited, for arranging the facility.