Stability of the cedi is superficial - Asaga
Adonten Community Bank records substantial profit
Mumuadu Rural Bank made a net profit of 290 million cedis
Accra (Greater Accra) 23 July 2001
Mr Moses Asaga, the Minority Spokesman on Finance, on Sunday said the seeming appreciation of the cedi was superficial and unsustainable since it was dependent on the fact that the government has frozen its legitimate expenditure.
He said, "government has not paid contractors, it is only paying emoluments of its workers but holding up money for administration. The needed foreign exchange of 250 million dollars and 2.3 trillion cedis to support the budget is not forthcoming"
Mr Asaga was speaking in an interview with the Ghana News Agency in reaction to a report in an Accra daily to the effect that President John Agyekum Kufuor told a delegation from Coca-Cola International that the revival of the economy was on course and that the cedi was appreciating.
The Minority Spokesman emphasised that the seeming stability the cedi was enjoying was because the government was not spending.
"All that it means is that you have money, which you can use to pay your debts but you refuse to pay and keep that money. When the time comes and you are compelled in one way or the other to meet your obligations, you discover that you don't have anything left", Mr Asaga said.
He said inflation last year was 42.1 per cent and not 100 per cent as the report said and given that the figure was now 36.8 per cent showed that the marginal drop was about four to five per cent adding, "expenditure will consume the drop if government begins to spend".
Mr Asaga said currently the demand for the dollar was low because "it is the off-season for imports. It is from September to December that traders chase foreign exchange to import goods for the Christmas.
He said the loans Parliament was approving now were monies negotiated by the previous National Democratic Congress (NDC) government and were strictly meant for specific projects and that such donor inflows could not be used to support the budget.
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New Tafo-Akyem (Eastern Region) 23 July 2001
The Adonten Community Bank raised its net profit from 30.3 million cedis in 1999 to 101.5 million cedis in 2000, being 235 per cent.
Within the same period, the bank's deposits rose by 45 per cent from 581.5 million cedis to one billion cedis while total revenue increased by 91 per cent from about 191 million cedis to 365.5 million cedis.
The Chairman of the Board of Directors of the Bank, Osabarima Kena Ampaw II announced this at the bank's Third Annual General Meeting (AGM) at New Tafo-Akyem at the weekend.
He announced that the bank recorded increases in shareholders funds by 38 per cent and its Capital Adequacy Ratio from 28.5 per cent to 59.3 per cent during the period.
On loans and overdrafts, the Chairman said the bank granted 213.2 million cedis up from the 125.6 million cedis in 1999, an increase of 77.7 per cent, from its own resources, while it disbursed over 97 million cedis of the East Akyem District Assembly Poverty Alleviation Credit Scheme to 100 applicants.
He, however, expressed concern that only 12.4 million cedis of the Poverty Alleviation Scheme had been repaid so far and announced that strategies including legal action would soon be taken to recover the outstanding loans.
Osabarima Ampaw, who is also the Kukurantumihene, attributed the achievements of the bank to the efficient operation of its newly introduced products such as the Susu Savings and Loan Scheme and intensified public relations and advertising.
Mr Raymond Amanfu of the Banking Supervision Department of the Bank of Ghana, cautioned Board of Directors of Rural Banks to avoid negative tendencies that could undermine the quality of the banks.
He cited the granting of facilities in excess of specified percentages of the bank's net worth and the granting of additional facilities to borrowers with unsettled overdue loans when the repayment of the original was in doubt.
Mr Amanfu commended the Adonten Community Bank for complying with the prudential requirements on Capital Adequacy and Liquidity Reserves ratios as well as improved profitability over the four years of its existence.
He urged the Board of Directors to continue with its vigilance and effective supervision, saying with such effective direction, the bank would be able to stimulate and transform the rural subsistence economy, create employment and raise the living standards of the people in its catchment area.
The Manager of the Bank, Mr Francis Mensah, announced that the bank would open three new mobilization centres at Addo Nkwanta, Maase and Koforidua this year in addition to those at Kukurantumi, Asafo and Osiem.
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Osino (Eastern Region) 23 July 2001
The Mumuadu Rural Bank in the Fanteakwa District of the Eastern Region made a net profit of 290.9 million cedis last year as against 80.7 million cedis in 1999 representing an increase of 260 per cent.
The bank mobilised a deposit of 3.88 billion cedis compared to the 2.3 billion cedis the previous year.
The Chairman of the Board of Directors of the Bank, Mr Noah Ansa-Dakwa, who announced this at the 13th annual general meeting (AGM) of the shareholders of the bank at Osino at the weekend, said the bank's investment increased from 1.05 billion cedis in 1999 to 2.60 billion cedis last year.
He said the total loans and overdrafts granted to customers grew from 1.236 billion cedis in 1999 to 2.7 billion cedis last year.
Mr Ansa-Dakwa attributed the high performances of the bank's operations to the policies adopted and the hard work of both the bank's management and staff.
He said the bank disbursed a total of 124.1 million cedis under the Poverty Alleviation Fund during the period out of which 102.130 million cedis was outstanding.
He, therefore, called on the beneficiaries to settle the loans without further delay.
The Chairman announced that under an agreement signed between the banks and IFAD/Bank of Ghana (BOG) for a loan facility of 500 million cedis to participate in the Small Credit Input Marketing Project (SCHIMP), credit facilities would be given to groups engaged in the production, marketing and processing of food crops and women in other income generating activities.
On the community programmes, he said, the bank donated 14 million cedis to the Osino Presbyterian Secondary/Technical school to set up a computer laboratory, two million cedis towards the electrification projects for Dome and Nsuapemso communities and one million cedis to the Gyampomani community to complete the renovation of their nursery block.
Mr Ansa-Dakwa said to improve the condition of the workers the bank has increased their salaries by 70 per cent as a motivation to enable them to give of their best.
Mr Joseph B. Clottey, Acting Head of the Banking Supervision Department of the BOG, reiterated the Bank's commitment to formulate and implement policies to stimulate the economic development of rural communities.
He advised rural banks to institute adequate internal control system to check lapses and malpractice.
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Accra (Greater Accra) 23 July 2001
Accra Brewery Limited (ABL) made a net profit of 1.2 billion cedis in the year ending March 31 as against one billion cedis the previous year, an increase of 20 per cent.
Turnover also rose from 40 billion cedis to 60 billion cedis for the same period.
Mr Joseph Kwesi Agyemang, Chairman of the Board of Directors of the company, announced these at the company's 26th annual general meeting (AGM) in Accra at the weekend.
He said the trying economic conditions created an extremely challenging operational environment for manufacturing companies making it difficult for them to retain profitability.
The Board Chairman said this year, shareholders were asked to invest in the company by way of Right Issue to reduce borrowing.
"It would be imprudent for your Directors to propose a dividend", he said.
However, a Script Issue in the form of one share for every one held was recommended for the shareholders.
Mr Agyemang expressed the hope that the company would be able to deliver growth and improve results.
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