The Government has directed banks and financial institutions in the country to submit to the Bank of Ghana, data on toxic debts related to contractors' borrowing. This is part of a major plan to offset arrears it inherited from the previous government as well as free up credit to the private sector, Finance Minister Dr. Kwabena Duffour has indicated. Dr Duffour said this after a crunch meeting in Accra on Tuesday with the banks. The Finance Minister tells Joy News government wants to have “a liquidation plan to support the business community.” In the meantime however, government has asked banks to continue to lend to contractors to enable them execute various projects presently suspended because of the lack of capital. Works on the various projects have stalled because the banks that have been supporting the contractors are hesitant in recent times because of the huge debts. Most of the contractors have had to fall on the banks for loans which they promised to pay once the government settled its indebtedness to them. Dr Duffour tells Joy Business the government is committed to settling all the debts in the immediate. The Finance Minister indicated that the central bank must receive the data on the indebtedness to the commercial banks next week to plan a mode of repayment. Although the ruling government puts the volume of debts it inherited at GH¢1.7 billion, arrears yet to be settled must be less as some contractors have already been settled. Meanwhile Dr Duffour has expressed optimism that the cost of borrowing would soon go down on the back of reducing inflation and a stabilizing cedi. “The cost of borrowing is too high and we’re asking them to also examine that,” he said, adding, “In the midst of stability we should also see signs of a downward trend in the cost of borrowing.” Source: Joy Business/Myjoyonline.com/Ghana *Fiifi Koomson contributed reporting