By Nelson Ayivor
The Bank of Ghana (BoG) has intensified its campaign against the rampant misuse of credit and escalating default rates that threaten to destabilize the country’s fragile financial system.
At a sensitisation session with the Ghana National Chamber of Commerce and Industry (GNCCI), Second Deputy Governor Matilda Asante Asiedu sounded a stern warning to borrowers and lenders alike: respect your obligations or risk suffocating access to credit for all.
Asiedu laid bare the gravity of the situation, stressing that loans must be strictly used for their intended purposes and repaid promptly to uphold confidence in Ghana’s banking sector.
“Misuse of loans and rising defaults shake the foundations of our financial system it must stop if we are to build resilience,” she declared.
The Deputy Governor underscored that credit discipline extends beyond personal responsibility; it is a cornerstone for economic stability.
Any erosion in repayment behaviour could lead to tightened credit conditions, leaving businesses especially micro, small, and medium-sized enterprises (MSMEs) struggling for capital at a critical growth juncture.
In a pointed call for awareness, the BoG is leveraging the Borrowers and Lenders Act to educate market participants on their legal duties and rights, fostering accountability and transparency. “Education is vital to lower defaults and restore trust in the system,” Asiedu added.
Representing the business community, GNCCI President Stephane Abass Miezan urged financial institutions and the BoG to ease credit access hurdles, particularly for SMEs hampered by stringent lending criteria.
While acknowledging the need for discipline, Miezan stressed that a facilitative credit environment is key to fueling Ghana’s economic dynamism.
The BoG’s sharpened focus seeks to balance prudent lending with inclusivity, ensuring funds are channelled to their rightful purpose while mitigating default risks.
With SMEs underpinning employment and growth, the central bank’s efforts aim to secure a stable financial ecosystem where borrowers are accountable and lenders confident.
Ultimately, the Bank of Ghana and GNCCI alignment embodies the dual pillars of responsible credit and expanded access necessary ingredients for sustainable economic progress amid mounting financial headwinds.