TUC praises govt’s $4bn banking sector clean up

TUC praises govt’s $4bn banking sector clean up
Source: Ghana |Myjoyonline.com | Akyena Brantuo | benjamin.brantuo@myjoyonline.com
Date: 20-08-2019 Time: 03:08:03:pm
Dr. Yaw Baah is the Secretary- General of the TUC

The body responsible for the welfare of Ghanaian workers, TUC, has lavished praises on government for cleaning the banking sector.

In a release aimed at offering a view of the Trade Unions Congress on government’s 2019 Mid- Year Budget Review, it commended the governor of the Central bank for implementing what it calls “difficult but necessary measures.”

A banking sector cleanup in 2017 and 2018 saw the collapse of nine banks and microfinance institutions.

This includes 192 microfinance companies having their licenses revoked with another 155 insolvent microcredit companies that have ceased operations also suffering the same fate.

The Central Bank in a press release also revoked the licences of 23 insolvent Savings and Loans companies.

BoG explained that regarding the microfinance companies, it took the action pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

The TUC has described the BOG’s exercise as “successful.”

It added that “There are indications that the (banking) sector is regaining public confidence. The economy of Ghana is expanding at a higher rate. A solid banking sector is required to support even faster growth of the economy.”

The Workers Union also praised the government for what it termed as consistent improvement in some key macroeconomic indicators.

“In 2018, real GDP (non-oil) grew by 6.5 percent; the end-of-period inflation dropped to 9.4 percent; the overall budget balance was -3.9 percent of GDP; primary balance was 1.4 percent of GDP; and gross international reserves was 3.6 months of imports of goods and services.

The indicators which it said were “remarkable achievement in macroeconomic management” has led to “further improvements in some of the indicators this year.”

 “At the end of the first quarter overall GDP had grown by over 6.7 percent; inflation had dropped further to 9.1 percent; overall budget balance was -3.3 percent; and gross international reserves had increased to 4.3 months of imports of goods and services,” the statement pointed out.