Taxpayers won't pay for loans acquired for establishment of National Devt Bank - Govt clarifies

Ghana has secured a €170 million facility for the establishment of the National Development Bank

• Government says the loan will not be paid by the taxpayer, but the institution itself.

• The new institution, which will take off in July, is expected to transform access to finance by small business and larger companies

The €170 million loan facility secured for the establishment of the National Development Bank will not be paid with the taxpayers’ money, the government of Ghana has said.

According to Financial Sector Division Director, Sampson Akligoh the institution has been made to be financially independent.

“If you look at the way things have been done, everything will be taken on by the National Development Bank. This is a concessional facility, and the bank can surely pay for everything,” he said on Joy News’ PM Express programme.

In 2017, the Nana Addo Dankwa Akufo-Addo-led government hinted it will establish a National Development Bank.

This facility, the government said will provide innovative and long term financing instruments for specific sectors of the economy.

The new institution, which will take off in July, is expected to transform access to finance by small business and larger companies across Ghana and unlock investment in agribusiness, manufacturing, informational technology and tourism.

Mr Akligoh believes authorities have worked around the clock to shield the bank operations from political interference.

“The nomination to the Board of the Bank is also being given an international perspective to ensure that it has the necessary corporate governance structures in place or call it the best international practice in terms of the way things are done.

“There has been the necessary legal protection in terms of workings of the bank to insulate it from any external influence,” he stated.

He continued, “Government is also working closely, World Bank so they can institute the needed structures that one can all world-class development bank in Ghana.”