Professor of economics at the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey has stated that the establishment of the National Development Bank will have no positive impact on the growth of the economy if government fails to apply proper business management in its operations.
The establishment of the bank which has been part of government’s plans since 2018 is set to commence operations in July 2021 following governments’ ability to raise the required seed capital of over 500 million dollars.
According to Finance Minister, Ken Ofori-Atta, the bank will refinance credit to industry and agriculture as a wholesale bank; and also provide guarantee instruments to encourage universal banks to lend to the specific sectors.
In an interview with Citi Business News, Prof. Peter Quartey said government must do its best for the bank to run effectively.
“The key thing is that the money has been found, what I will recommend is finding the right people to manage this bank. If it is run as a business, Ghana will be in a better place but if we take it as business as usual, and we don’t hire the competent and right people then it will be difficult to manage, loans will be made, but we will not be able to recover these loans so the National Development Bank is something that I support, however, it should be run by competent people when that is done we will certainly reap the long term benefits”.