Rural and community banks want to be directly engaged in the disbursement of government loans to small and medium scale businesses. The Micro Credit and Small Loans Centre (MASLOC) is set to advance money to new beneficiaries under the scheme. But managers are still considering the mode of disbursement, following wanton abuse of the credit facility, which is offered at concessionary interest rates. MASLOC was established in 2006 to manage micro finance schemes introduced under the second phase of Ghana’s Poverty Reduction Strategy to grow the private sector. High default in loan repayment is however crippling the scheme and denying other small-scale entrepreneurs access to credit. Officials of MASLOC are considering several options to recover over five million Ghana Cedis from loan defaulters. Public Relations Officer, Mustapha Abubakar, told Luv Fm despite several notices, most defaulters have refused to settle their debt. He says MASLOC will publish in the dailies names and pictures of individuals and groups who owe the scheme. The secretariat is currently collaborating with the police in a final negotiation with defaulters in Accra and later other regions, whilst seeking means to disburse new funds. Senior Credit Manager of Atwima Kwanwoma Rural Bank, William Asamoah Abatia, believes it would be ideal for MASLOC to channel the funds through the rural banks. He said: “When the funds come and the bank is supposed to follow its laid don procedures of granting loans, it becomes very easy to disburse. You are not under any influence but you just do the right thing and this makes recovery very easy.” There are however concerns about an increase in interest rate should the banks disburse the loans, but Mr. Abatia said rural banks are better placed to administer pro-poor credit interventions. Story by Kofi Adu Domfeh/Myjoyonline.com/Ghana