BoG to reduce ‘high-risk’ perception surrounding SMEs - Opoku-Afari

Deputy Governor of the central bank has assured of the Bank of Ghana’s resolve to nurture the just launched Ghana Cares Guarantee Scheme programme by government.

According to Dr. Maxwell Opoku-Afari, the Bank of Ghana through the scheme will ensure the high-risk perception surrounding Small and Medium Enterprises (SMEs) is lessened.

He made this known speaking at the launch of government’s GH¢2 billion guarantee scheme to facilitate lending to SME’s in Accra under the Ghana CARES programme.

“It is my fervent belief that this guarantee scheme under the Ghana CARES programme would go a long way to reduce the risk perception of these SMEs, help reduce their cost of borrowing and increase their access to appropriate financing,” Dr Opoku-Afari said.

“This in turn should enable them to produce more to meet both local demand and to provide decent livelihoods to households that depend on them. A unique feature of the Ghana CARES program is that it is being done through the provision of guarantees rather than cash handouts, and it is less distortionary to both the financial system and beneficiary’s own sustainability going forward,” he added.

Meanwhile, the newly launched US$2 billion guarantee scheme mean to facilitate lending to SME’s comes as part of initiatives by government to cushion businesses impacted by the coronavirus pandemic.

Additionally, government has earlier launched the GH¢1 billion Coronavirus Alleviation Programme Business Support Scheme intended to also cushion Micro, Small and Medium-Scale businesses access to funding to scale-up.