Two billion cedis unused because of loan defaulters

Asunsu (B/A), Oct 04, GNA - Two billion cedis earmarked for distribution to small-scale businesses in Dormaa District this year has not been utilized due to low loan recovery from previous beneficiaries. Mr Yaw Asiedu Mensah, MP for Dormaa West, said this at a durbar of chiefs and people of Asunsu in honour of the new District Chief Executive, Squadron Leader Benjamin Anane Asamoah (RTD). He said loan recovery statistics from the Agricultural Development Bank and rural banks engaged in the distribution of loans indicated that only nine per cent of beneficiaries had paid back.

''The situation is unhealthy and detrimental to the objectives behind the setting up of such credit facilities, which have primarily been designed to tackle abject poverty, especially in the rural areas." Mr Mensah reminded the defaulters that their continuous delay in paying back denied prospective beneficiaries the chance to access such loans to expand their businesses.

He warned that defaulters would be made to face the full rigours of the law if they failed to honour their side of the contract on time.

Squadron Leader Asamoah appealed to traditional authorities and civil society organizations to pursue programs that would help discourage early and multiple sex practices among the youth to help curb the spread of HIV/AIDS.

He warned illegal chainsaw operators whose activities are on the increase in the area to change from the "unpatriotic" practice or be forced to do so.