The Ghana Association of Savings and Loans Companies (GHASALC) has identified the emigration of health workers and other public sector employees as one of the key factors that contributed to the high rate of non-performing loans in 2023.
This, along with other factors such as the challenging economic climate, has led to an increase in loan repayment defaults.
Tweneboah Kodua Boakye, the Executive Secretary of the Ghana Association of Savings and Loans Companies, acknowledged during a media briefing that despite some achievements in the savings and loans sector in 2023, the sector faced substantial challenges.
One of these challenges was the rise in non-performing loans due to the departure of public sector workers from the country.
Kwame Owusu-Boateng, the Board Chairman of the Ghana Association of Savings and Loans Companies, provided details on how the sector has grown by increasing its total assets compared to the previous year.
In the meantime, Dr. Ernest Addison, the Governor of the Bank of Ghana, expressed concern over the deviation of savings and loans companies from their primary mission.
Osei Gyasi, the Head of the Banking Supervision Department at the Central Bank, speaking on behalf of the governor, encouraged financial institutions to persist in their support for MSMEs.
citinewsroom.com
