Economist, Dr. Patrick Asuming is of the view that businesses may delay in investing in the first quarter of the year to observe the conclusions of the International Monetary Fund (IMF) programme before increasing financial inflows.
This, he said could slow economic activities if government does not move quickly to boost investor confidence.
Speaking to Joy Business, Dr. Asuming stated that financial institutions may also react by tightening financing to the private sector.
He explained that the phenomenon should be expected as businesses always look at government projections to plan.
“I think overall, businesses will probably want to put on hold any major investment that requires financing from the banks because of the ongoing discussions about the Debt Exchange Pogramme”, he said.
He is of the view that the programme will change the strength and lending pattern of the banks.
Dr. Asuming stated that it will be normal to see banks tighten financing to the private sector until financial sector players assess the impact of the programme on their operations.
He cautioned that businesses that wish to overcome financial challenges must be moderate in their expansion drive to avert challenges.
“It is important for them to plan carefully and then maybe minimize their planned expansions and the business investment for the mean time”, he said.
Latest Stories
-
PSG clinch Ligue 1 title after Lyon’s win over Monaco
2 hours -
Guinness Ghana sets the pace at Ghana Beverage Awards with six awards
2 hours -
Burkina Faso suspends BBC, VOA radio broadcasts over killings coverage
2 hours -
Nicole Kidman honoured with AFI Life Achievement Award
3 hours -
Brassier scores winner for Brest as they edge Rennes to secure European football
3 hours -
Akufo-Addo jabs Ejisu independent candidate; rubbishes allegations to rig by-election
3 hours -
‘What are the real causes of the erratic power outages?’ GUTA demands from ECG
3 hours -
Implementing ESG framework in Ghana’s energy sector for sustainability
4 hours -
CAFCC: Dreams FC exit competition after 3-0 defeat in Kumasi
4 hours -
The detrimental effects of political interference on Ghana’s electricity sustainability
4 hours -
Prof. Opoku-Agyemang’s appointment as running mate intimidates the NPP – Benjamin Quashie
4 hours -
Black Stars physical trainer dead
4 hours -
Bawumia to kick off nationwide campaign for Election 2024 tomorrow
4 hours -
GUTA charges ECG to provide ‘dumsor’ timetable for businesses to plan
4 hours -
Reason for training professional counsellors is to heal a hurting world – CCP president
6 hours