Do not politicize GH¢600 million stimulus for businesses - GUTA

The Ghana Union of Traders (GUTA) has commended the government for providing businesses with a stimulus package in the face of the challenges confronting businesses due to the coronavirus outbreak.

GUTA is, however, advocating against any form of politicising of the distribution of the funds.

President of GUTA who made the call said the decision to roll the soft loan for businesses will prevent them from collapsing and also prevent an increase in joblessness.

Government is set to roll out a GH¢600 million soft loan scheme for Small and Medium Scale businesses in the country.

The loan scheme is expected to have a one-year moratorium and two-year repayment period.

Addressing the nation on the progress that has been made in the fight against the coronavirus pandemic in his 6th address, President Akufo-Addo said, “Government, in collaboration with the National Board for Small Scale Industries (NBSSI), Business & Trade Associations and selected Commercial and Rural Banks, will roll out a soft loan scheme up to a total of six hundred million cedis (GH¢600 million), which will have a one-year moratorium and two-year repayment period for micro, small and medium scale businesses.”

This Dr. Obeng said is a great idea because businesses are struggling.

”GUTA is also appealing to the government to add GUTA members to any committee that would be set to oversee the implementation. We would also appeal to the government to avoid any form of politicisation so people do not take advantage of the situation,” he added.

Meanwhile, he has urged businesses that are yet to register with any trade association to do so since the stimulus package would be distributed through their trade unions.

He said per the modalities in place, beneficiaries must be members of recognised associations and in good standing.

He further advised members to pay back the loan as stipulated.

The loan, a total of GH¢600 million, will have a one-year moratorium and two-year repayment period.