According to him, the digital property addressing system as well as the rolling out of the National Identification cards are all geared towards making this dream come true.

The average interest rate as at September 2017, was at 29% with banks citing the high risk of loan defaulters as a major factor contributing to the high interest rate.

South African banks charge an average of 10.25%, according to figures from their central banks.

[contextly_sidebar id=”QUQJoP51O4u8SzCjXTTgyToUiyDe9txd”]Speaking at the 21 st National Banking Conference, organized by the Charted Institute of Bankers, in Accra on Tuesday November 28, 2017, Vice President Bawumia explained that, Ghana has one of the highest mortgage-to- income ratios in the world, and high interest rates because of the largely informal nature of her economy, and the reforms being undertaken by the Nana Akufo-Addo government are meant to address this challenge.

Dr. Bawumia, who is a former deputy governor of the Central bank, said banks are unable to lend at low rates because of the risks associated with lending to an unknown quantity, hence Government’s decision to introduce measures such as the National ID card and the Digital Property Addressing system to make it easier to identify and trace borrowers and thereby reduce the risk premium.

“As bankers, we’ve always realized that high interest rates makes it difficult for customers to pay, and it makes the banking system very fragile. Banks face many problems. The risk that customers present: they come to you, you don’t know what their history is, there is no unique ID for an individual customer; you cannot tell. The credit reference system is not really robust so you don’t know exactly what their history is, how many banks they’ve taken loans from and they haven’t paid, whether there’s been a change of name in the middle; you are presented with an unknown quantity and sometimes somebody opens an account today and they want to borrow money that same afternoon.”

“The risk is quite high…because you are dealing with depositors’ funds, but you don’t know who they (borrowers) are, and you don’t know where they live, so we (government) basically said you need to at least put these fundamentals in place before you can really expect a sustainable decline in interest rates that can be driven by proper risk assessment through credit rating agencies and so on.”

He added that these problems among others, compelled government to employ technology in a bid to tackle the challenge.

“This is what is driving the issue of the national ID card. The National Digital Property Address System has also been launched. Preparations are underway for the mass issuance of the national ID card so that we can really trace customers, we can build a robust credit reference agency and together these will be very fundamental to reducing interest rates and strengthening the stability of our financial system and our banking system,” he added.

The Vice President urged banks to play a greater role in growing and strengthening Ghana’s economy, while assuring of government’s commitment to ensuring macro-economic stability.

“I challenge banks to be relevant to the economy by extending loans to the productive sectors particularly the Small and Medium Scale Enterprises. As a government, we are committed to improving the economy through the pursuit of prudent financial management policies.

“The future of banking is bright, but we have a lot to do together as key stakeholders in the industry. Let us pursue banking reforms and policies that will strengthen prudential and regulatory oversight to maintain a resilient banking sector.”

The 21 st National Banking Conference is under the theme “Building a Robust and Sustainable Banking System in Ghana”.

It is being attended by heads of banking institutions in Ghana, as well as current and former Governors of the Bank of Ghana.

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By: citifmonline.com/Ghana

The post Ghana card, digital address will help reduce interest rates – Bawumia appeared first on Citi 97.3 FM - Relevant Radio. Always.

The project, which started under the Mahama government, was re-launched by President Akufo-Addo in September 2018, and was supposed to begin fresh registrations.

President Akufo-Addo received the first Ghana card.

[contextly_sidebar id=”d5LwiLnX9YQ9tDvd124WD88nzRS1FOQ1″]NIA had targeted to complete the first phase of the registration exercise by October 15, 2017; but it seems this cannot be achieved following the delay in amending portions of the bill backing the project.

The National Identity Register (Amendment) Bill, 2017, was passed by parliament last week under a ‘certificate of urgency.’

Following the passage of the Amendment to the National Identity Register, the Legislative Instrument (L.I.) is expected to be laid in Parliament in the course of next week, to allow for 21 sitting days for the LI to mature to effectively bring the new law into existence.

Executive Secretary of the National Identification Authority, Prof Ken Attafuah, in a Citi News interview, said they might begin the entire process by mid-January 2018.

“Parliament is a master of its own procedures –it can sit on Saturday or Sunday. Parliament is determined, you could tell from the tenure of the debate in the House that Parliament is unanimous and united in its understanding and expectation that this National Identification system project is critical for the development of this country, and that the amendments ought to pass. It is however a matter of procedure that A must happen before B.”

“Once that happens, I have every reasonable basis to expect that Parliament in its wisdom may find it necessary to meet on such days as to ensure that this amendment that we are seeking to the form is passed in time to enable us roll out before the end of this year. If that does not happen, worst case scenario, early January or mid-January 2018, we will roll out. But this is the only thing we are waiting for – the amendment to the form,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post NIA misses registration schedule; process likely to start in 2018 appeared first on Citi 97.3 FM - Relevant Radio. Always.

Briefing the management of Ghana Education Service (GES) in Accra recently, Prof. Attafuah said the national identification exercise, which started in 2008, but was halted in 2014, will roll out fully and ensure that both Ghanaians and foreigners in the country are digitally registered.

He said “the Authority has thoroughly reviewed the challenges that it encountered in the past and it has put appropriate measures in place, including having to upgrade the 2D barcode card to a smartcard with dual interface, collecting data and issuing the card to persons from age 0 as the existing 2D barcode cards are issued to those from ages 0 to 14.”

“The system is designed to facilitate data sharing among user agencies and the smartcard has tactile impression features,” he added.

Mr. Anthony Boateng, acting Deputy Director-General of GES, who chaired the meeting on behalf of the Director-General, Prof. Kwasi Opoku-Amankwa, lauded the government and the Authority for the initiative and hard work, and pledged the support of the GES in the exercise.

“There is a need for intensive public education on the exercise, considering the fact that it is starting from this month.

“The management of GES will disseminate the information to the various regions, districts and schools as soon as possible, and we are prepared to support you to undertake this laudable exercise,” he added.

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By: citifmonline.com/Ghana

The post NIA engages GES ahead of Ghanacard roll out appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Executive Secretary of NIA, Prof. Ken Agyeman Attafuah, who made the revelation on the Citi Breakfast Show on Tuesday, said the cards will be issued to them instantly after their details are captured onto the NIA system.

[contextly_sidebar id=”E84gaYibcNP9swRyxsUYJB0hZeL8OSUQ”]Mr. Attafuah noted that the security agencies as well as the judicial service and staff of the Flagstaff House, will all be registered within the first phase of the project which will end on or before November 15, 2017.

“Before the 15^th of November, we expect to register the entire security sector and service commanders in the Greater Accra Region. By that I mean Ghana Armed Forces, Prisons, Police, their veterans and all of those in hat category. Then we will also register the judicial service, we will register the three former presidents and their households and offices. We will register the flagstaff House, the seat of government,” he added.

President Nana Addo Dankwa Akufo-Addo was the first to have been issued with the card to commence the registration of Ghanaians onto the rebranded NIA system.

The National ID scheme is expected to formalize the economy through the establishment of a national database linking the Passport Office, National Health Insurance Scheme (NHIS), Driver and Vehicle Licensing Authority (DVLA), Ghana Revenue Authority among others.

October 2018 deadline

Prof. Attafuah said the phase two of the project which will continue after November 15, will be extended to schools, the banking sector and Ghanaian residents within the Greater Accra Region, where every Ghanaian will be issued an instant ID card.

He added that his team will later continue the registration in the Central Region, and proceed to the Brong Ahafo, Ashanti, Eastern, Volta, Northern, Upper East and Upper West Regions respectively.

He said NIA is hoping to complete the registrations by October 2018.

Ghanaians abroad to be registered

The NIA Executive Secretary also disclosed that Ghanaians living abroad will not be left out.

“We are expecting to conclude all these in October 2018. In the course of this work, when we are about six months into it, we will talk with the Ministry of Foreign Affairs and Regional Integration to begin the registration of Ghanaians abroad as required by law. So we will work through the Ghana Commissions abroad and establish modalities for registering Ghanaians across the world,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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The post Mahama, Rawlings, Kufuor to receive Ghana cards soon – NIA appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking at the test registration today [Friday] to officially outdoor the ID card, the President said :”The NPP government under my leadership has not only prioritized the NIA, but also demonstrated commitment to making the NIA work again. Today’s ceremony also constitutes a practical demonstration of the fulfillment of yet another promise of my party, the New Patriotic Party, during the 2016 campaign, that we will mobilize and formalize the Ghanaian economy through the establishment of a credible national data base and using the National Identification System (NIS) as the primary identifier as prescribed by the law.”

[contextly_sidebar id=”uK1SDDHaltuQ18CIxYRefL07picBfYFs”]The registration process started under the erstwhile Kufour administration, but stalled under successive governments.

But speaking at the test registration today [Friday] at the NIA, President Akufo-Addo blamed the circulation of too many IDs in the system on the failure of previous governments to complete the process.

He however expressed optimism in the ability of the card to improve the quality of life of Ghanaians.

Between July 2008 and May 2010, the National Identification Authority began mass registration of Ghanaians for the unique ID cards.

A total of 11 million people in six regions were registered in the process. Amidst various challenges, collection of the cards started later in 2011.

Few years after, some state institutions and banks rejected it as an unrecognized state identification card.

Meanwhile the President has sworn in eight members of the governing board of the National Identification Authority, charging them to work with utmost integrity and professionalism.

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By: Marian Ansah & Caleb Kudah/citifmonline.com/Ghana

The post Another NPP promise fulfilled with new Ghana card – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.