Credit to private sector decreased under NPP gov’t by 31.6% – Mahama

Former President John Mahama has stated that credit to private sector under the New Patriotic Party (NPP) government  has decreased by 31.6%.

“Recent data from available research shows that the cost of living in Ghana is very high, and people are struggling to make ends meet due to the economic downturn.

“This includes pensioners who invested their savings in government bonds, hoping to enjoy a better retirement. Business confidence remains low, with private sector credit declining in real terms. As of October 2023, credit to the private sector had decreased significantly by 31.6%. This is because of the government’s excessive borrowing over the last seven years and reliance on the short-term treasury market,” Mr. Mahama disclosed at the 9th Ghana CEO Network Business Cocktail Thursday, December 07, 2023

According to him, the lending rates increased to over 32% in October 2023 due to the Bank of Ghana’s tight monetary policy, high treasury bill rates, and rising non-performing loans.

“The immutable reality is that the first three quarters of the year (2023) have also been a tragic period for Ghana’s industries, causing a setback for the country’s economic transformation. While the mining and quarry sector is still holding out, most sub-sectors, such as construction, electricity, water supply, sewerage, and waste management, have experienced a decline.

“These are clear signs of an ailing economy— an economy whose industrial base is failing and businesses collapsing with growing unemployment and its associated poverty and misery. Unemployment remains high, with the latest data indicating about 14%.”

Source: Today.com.gh