Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says improving macroeconomic conditions, including relative exchange rate stability and declining inflation, are creating opportunities for stronger credit growth in the economy.

He said the more stable currency, easing financial conditions and narrowing interest margins were providing a more favourable environment for businesses and financial institutions.

Speaking at an engagement with chief executives of banks in Accra on Wednesday, August 12, Dr Asiama said the improvements were already beginning to translate into a rebound in credit creation.

“Inflation has declined significantly, the exchange rate has remained relatively stable, financial conditions have eased considerably, and interest margins have become increasingly compressed. Against this backdrop, we are beginning to see a strong rebound in credit creation,” he said.

The Governor, however, acknowledged that access to finance remained a major challenge for many small and medium-sized enterprises, particularly businesses operating within the agricultural value chain.

He therefore urged banks to take advantage of the improved macroeconomic environment to expand lending to productive sectors of the economy.

Dr Asiama also encouraged financial institutions to develop credit products that reflect the operating realities of businesses, especially those in agriculture, where income and cash flows are often seasonal.

He said repayment structures tailored to borrowers’ cash-flow patterns could improve access to credit while helping banks manage lending risks more effectively.

According to the Governor, the gains from improving macroeconomic conditions must ultimately translate into increased productive activity, business expansion and job creation.