Tema Assembly vets applications for poverty fund
Rural banks to lose licence for mismanagement
Tema Assembly vets applications for poverty fund
Tema (Greater Accra), 4th October 99
The Tema Municipal Assembly (TMA) Poverty Alleviation Fund (PAF) Credit Allocation Committee has begun vetting applications for loans from the fund meant to support private small-scale businesses.
The committee will make recommendations to the Agricultural Development Bank (ADB), which has now accepted to manage the TMA's PAF after a number of banks declined to do so due to the rules and regulations attached to the running of the PAF.
Nii Armah Ashietey, TMA Chief Executive announced this at the inauguration and swearing-in of the 11-member executive of the Tema Community Eight branch of the Tema Co-operative Women's Society at Tema on Saturday.
Nii Ashietey dismissed allegations that the municipality's share of the poverty alleviation fund has been embezzled that was why its implementation has still not taken-off and said the main problem was getting a bank to manage the fund.
He said the National Investment Bank (NIB) for example was concerned about how to recover the loan if it should manage the fund, while Merchant Bank Ghana, Limited was not ready to handle any amount less than 700 million cedis.
Nii Ashietey told members of the co-operative society that they qualify for the PAF and urged them to take advantage of it improve the lot of the women.
Miss Mercy Asiedu, President of the Society said it aims among other things to help members engage in income generating activities to support their families and foster peace, unity and love among members.
She said the society also seeks to educate members on good housekeeping, improving family relationships in their individual homes and counselling their daughters to live disciplined lives.
GRi
Return to top Rural banks to lose licence for mismanagement
Breman-Essikuma(Central Region), 4th October 99
The Bank of Ghana (BOG), has threatened to withdraw the licence of Rural and Community banks that become distressed through mismanagement.
This was contained in a speech read on behalf of Mr. Emmanuel Asiedu-Mante, Head of the Rural Banking Division of the Bank, BOG, at the 14th annual general meeting of the Brakwa-Breman Rural bank at Breman-Essikuma on Saturday.
He directed Rural and Community banks wishing to enter into leasing contracts for their computerisation to seek approval from the Central Bank to avoid the situation where most of the banks, which are computerising their operations through leasing companies, have incurred huge capital expenditures, because they have not been budgeted for.
Some banks, which were previously capital adequate have become capital deficient as a result.
He said this could easily lead to a situation where the levels of capital expenditure would exceed the available shareholders' funds and consequently make the banks capital deficient.
The Central Bank expects Rural Banks to prepare both long and short term capital expenditure budgets, which would be funded from long-term sources, Mr. Asiedu-Mante said.
He asked rural banks to conduct their businesses with a high degree of dedication, commitment and honesty and commended directors and workers of the bank for their "excellent team work", which has made the bank one of the best in the country.
Rural Banks should not pre-finance Akuafo cheques and desist from using treasury bills as a pledge since the BOG does not approve of it, he said.
He advised the public also to cultivate the habit of using cheques and other non-cash means for settling business transactions.
Nana Obaatan Otoo, President of the Central Region branch of the Association of Rural and Community Banks, called on shareholders to increase their shareholdings to make banks financially strong.
The bank recorded a net profit of 142,000,000 cedis during its 1998 operational period as against 87,000,000 cedis in 1997.
Mr. Emmanuel Aryeh-Obeng, Chairman of the Board of Directors, said the bank's that assets rose from 899.7 millions cedis to 1.2 billion cedis during the period.
Loans totalling 366,00,000 cedis were disbursed to transport operators, traders, farmers and cottage industrialists while nearly the same amount was given women to support their income generating ventures.
GRi