Business News Wed, 27 Nov 2019

Enterprise Credit Scheme to target youth and entrepreneurship for job creation - Ofori-Atta

Finance Minister, Ken Ofori-Atta has explained that the Enterprise Credit Scheme is expected to facilitate job creation for the youth and entrepreneurship ventures.

According to him, the scheme, which was announced in his 2020 Budget and Economic Policy will target some GHS2 billion for businesses and entrepreneurs to bring the liquidity that is required to manage their credit.

“If you look at the budget that was read on November 13, the new Enterprise Credit scheme which will target some GHS2 billion is meant to bring the liquidity that is required for entrepreneurs and businesses and also see whether we can take some first loss also on de-risking mechanisms which will then enable the lending rates to be much lower,” Ofori-Atta said this in an interview with GhanaWeb.

“Our expectation is that, the Enterprise Credit Scheme will catalyze on entrepreneurship and the youth to get into jobs,” he added.

Finance Minister, made this known on the sidelines at the SDGs Investment Fair in Accra, on Wednesday, November 27 on the theme; “Sustainable Development Financing: Building Mutually Beneficial Partnerships.”

BoG's role as part of the Enterprise Credit Scheme

Governor of the Bank of Ghana, Dr Ernest Addison on Monday, November 25 during a Monetary Policy Meeting said the central bank is to set aside 2 percent of the central banks’ primary reserve to support targeted lending to Small and Medium Enterprises (SMEs) as part of the Enterprise Credit Scheme announced by the Finance Minister in the 2020 Budget and Economic Policy.

Dr Addison, however, assured that the funds will be kept at the Central Bank and made available to institutions that participate in the Scheme.

Source: www.ghanaweb.com