€170m loan for creation of Development Bank to be repaid in 15 years – Ofori Atta

Finance Minister, Ken Ofori-Atta has disclosed that the €170 million loan facility secured for the establishment of the Development Bank Ghana (DBG) will be paid back in some 15 years.

According to him, the facility comes with one of the lowest interest rates of 0.5 percent with a 5-year moratorium.

Speaking with journalists in Accra on May 20, the finance minister explained, “this is a facility with one of the lowest interest rates of just half a zero percent with a maturity period of 15 to 20 years with a five years moratorium given to us.”

“The essence of this is to ensure that institutions are able to borrow on their own credit history and balance sheet without further burden on the central government” he said.

Meanwhile, President Akufo-Addo has assured that the funds will be used for its intended purposes.

Speaking after a signing ceremony of the loan for the establishment of the bank in Belgium, the president pointed that the DBG when operational will satisfy the highest standards, scrutiny and best practices of Development Banks across the world.

Finance Minister, Ken Ofori-Atta had earlier disclosed that the Development Bank Ghana will in July this year commence its operations.

The bank according to the minister will serve as a wholesale entity that will offer guarantee investment instruments in order to woo universal banks to lend to critical growth sectors.

Source: www.ghanaweb.com