Tsito gets Rural Bank

Tsito (V/R), Feb 21, GNA - Mr Joseph Kwaku Nayan, Deputy Volta Regional Minister, has called on people who have benefited from various micro-credit loans provided by the government to endeavour to pay back. The Deputy Regional Minister made the call when he inaugurated the Butawu Rural Bank at Tsito on Wednesday.

The Bank would serve the people of Awudome and Abutia Traditional areas, which hitherto had no banking facility.

He reiterated that it was only through the repayment that the schemes could be sustained.

Mr. Nayan observed that the rural banking system was to create Micro Credit facilities, which would serve as the bedrock for economic development and poverty eradication.

He said the successful operation of the Bank would greatly complement government efforts at improving the rural economy through wealth creation and poverty reduction through interventions such as the Community Based Rural Development Project, National Youth Employment Programme and Micro Credit to farmers.

The Deputy Regional Minister observed that many Rural Banks in the country had gone bankrupt due to mismanagement.

Mr Nayan expressed the hope that opening of the bank would help provide employment opportunities for the people in the area, adding that through the granting of credit facilities, businesses in the area would expand and the cumulative effect will be a better life for the people. The Deputy Regional Minister advised the Board of Directors of the Bank to help run the bank in the most efficient and effective way to enable it to achieve its objectives.

Mr Fredrick France, Head of Banking Supervision Department Bank of Ghana, admonished the Directors of the Bank to ensure that only qualified and proven personnel with high integrity and honesty were allowed to work at the bank.

He announced that Bank of Ghana would soon start imposing penalty units on Rural Banks that breach the provision of the banking law. He said the Central Bank would soon carry out snap checks on loan performance in Rural and Community Banks to ensure proper loan administration and compliance with Bank of Ghana directives.

Mr Duke Osam-Duodu, Deputy Managing Director ARB Apex Bank Limited, charged the Bank to introduce products that would speed up its deposit mobilization drive and in due course, make credits available to the people who are engaged in various economic activities especially in agriculture.

He urged them to take advantage of the proposed re-denomination of the cedi to launch its deposit mobilization drive.

"Take advantage of the programme and open accounts with zero balances for all people within your catchments area, this will make it easier for the people to change their monies into the new Ghana Cedi and also make the exercise a success", he stated.

Ms Elizabeth Ohene, Minister of State, urged the people to patronize the Bank to enhance its operations.

Togbe Setsu XII, Fiato of Awudome, announced that there was shortage of water in the two traditional areas and appealed to the Ho Municipal Assembly to help provide the area with potable drinking water. Togbe Setsu thanked the authorities for establishing the Bank and expressed the hope that the people would embrace its services. 21 Feb. 07