Government is due to establish a National Development Bank (NBD), Finance Minister, Ken Ofori-Atta has announced.
‘’Mr. Speaker feasibility study for the establishment of the National Development Bank specifying the rationale, mandate, business model, legal and regulatory framework, ownership, governance and sustainability of the Bank has been completed’’ Mr. Ofori-Atta while presenting the 2020 Budget and Economic Policy Statement Wednesday in Parliament.
The National Development according to him, will commence operations in 2020.
‘’Government is working with the World Bank and other development partners to capitalize the bank in 2020 for it to commence operations. The National Development Bank as envisioned will refinance credit to industry and agriculture as a wholesale bank; and also provide guarantee instruments to encourage universal banks to lend to these specific sectors of the economy.’’ He said.
The Finance Minister continued that ‘’The National Development Bank (NDB) will be an independent institution with strong corporate governance framework; and would be globally rated to enable it leverage foreign private capital for industrial and agriculture development in the country. The Government will also provide periodic dedicated funds for intervention in key areas of the economy such as large scale agro processing, housing, through various schemes and funds as needed for economic and social development and jobs.’’
He added that ‘’It is expected that the National Development Bank will provide cheaper and long term funding for the growth and expansion of key companies operating in the agriculture and industry sectors. The development bank will also lend through specialized banks to key anchor industries at the Metropolitan, Metropolis and District Assemblies level to support the Governments IDIF initiative.’’
Source: BestNewsGH.com
