Konongo (Ash), July 22, GNA - The disbursement of a credit facility under the Rural Enterprise Project (REP) in the Asante-Akim North and South districts has come to a temporary halt following non-payment on the part of beneficiaries.
The low recovery rate of the Rural Enterprises Support Fund aimed at providing start-up capital to beneficiaries of the REP has deterred guarantors from assisting applicants to source for loans. This, coupled with stringent measures put in place by the Asante-Akyem Rural Bank to ensure the right people get access to the facility has affected its smooth disbursement.
These came to light as reactions to appeals by participants at a mushroom production workshop seeking financial assistance to establish their own businesses at Praaso near Konongo on Friday.
Mr Victor Kusi, the Head of the District Business Advisory Centre (BAC), in a response to their pleas said out of 450 million cedis given out as loans so far, only eight million cedis had been recovered, defeating the purpose for which the fund was set up. He said the refusal of initial beneficiaries to pay back their loans had made it extremely difficult for his outfit to source for loans on behalf of applicants.
Mr Kusi hinted that the Asante-Akyem Rural Bank had suspended further request for money from the Bank of Ghana for disbursement as a result of the situation.
He, however, urged the participants to seek for assistance from other loan facilities in their own interest.
