Cal Bank to support Ghana’s SME sector with $20m fund from IFC

Cal Bank to support Ghana’s SME sector with $20m fund from IFC
Source: Ghana | Joy Business | Ebenezer K. Sabutey
Date: 14-12-2016 Time: 02:12:11:pm
Managing Director of Cal Bank, Frand Adu Jnr

Leading bank in Ghana, Cal Bank has initiated discussions with the International Financial Corporation (IFC) to raise $20 million to support the Small Medium Enterprise (SME) sector in the country.

Managing Director of the Bank, Frank Adu who addressed some investors and media in Accra on the theme "Facts behind the Figures" explained that the amount if raised would be used to support its loan portfolio.

The loan would not be extended to the Agricultural and Agribusiness sector, he said.

According to Mr Adu, when negotiations are successful Cal Bank would expand and strengthen its involvement in the private sector.

Meanwhile, Executive Director of Cal Bank, Philip Owuradu revealed that there is a significant increase of 92% in credit loss expenses.

This, he said was due to recognized loan impairment of specific construction and Commerce sector loans.

There was an increase in impairment due to challenging macro-economic fundamentals in 2016.

The bank, therefore, recorded an increase in total deposits by 40.3% as branch network increased to 26 across the country.

The growth in deposits was achieved in spite of aggressive marketing and competitive deposit promotion strategies within banking and non banking sectors over the period, he added.

On the general outlook, Mr Owuradu said the bank would leverage on growth in digital and mobile technology to develop cutting edge solutions.

  This will offer customers convenience and also reach out to the unbanked, he said.

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