The Minister of Foreign Affairs, Hannah Tetteh has shot down calls for the establishment of an Export Development Bank.<\/p>\n
The bank\u00a0was to be established to provide\u00a0finance for industries focused on producing for exports.<\/p>\n
Citi Business News<\/strong> gathers plans to establish this bank has been on the table for some time.<\/p>\n Hannah Tetteh\u00a0said this\u00a0at the Graphic Business\/Fidelity Bank Breakfast meeting on the theme \u201cMaximizing the value of exports to improve Ghana\u2019s trade balance\u201d.<\/p>\n Minister of Trade and Industry, Haruna Iddrisu announced the Export Development and Agricultural Fund (EDAIF) will be turned into a bank over a five year period. EDAIF is currently focused on providing debt and equity finance for Agricultural and other Export industries.<\/p>\n \u201cI am in discussion with the Ministry of Finance for the strategic conversion of EDAIF into an import and export bank over a five year period. We needed to be guided about the feed because it relies on an import levy, we need to work such that we can sustain it over a period of time and to learn some of the lessons that other state financial institutions have been subjected to\u201d.<\/p>\n But the former Minister Trade and current Minister of Foreign Affairs, Hannah Tetteh says there is no need for an export-focused\u00a0bank.<\/p>\n \u201cI don\u2019t think the issue is to setup another bank. If we honestly reflect on our past, we will know that the challenge with most of the state-owned banks has been that there have been interests that have determined their lending policy.\u201d<\/p>\n According to her, \u201cThose interests have not been based on sound economics as a result of which banks have to continue to be bailed out by the government of Ghana or by other means.\u201d<\/p>\n \u201cThey have not performed the core function assigned to them\u201d she added.<\/p>\n Earlier, former Minister of Trade under the Kuffour Administration blamed the worsening Trade deficit on the lack of an efficient trade bank dedicated to export finance.<\/p>\n According to Dr Konadu Apraku, while in office he instituted the policy for the establishment of the bank, but this was not implemented.<\/p>\n \u201cI proposed the setting up the Ghana Export and Investment bank- a bank that will have the primary responsibility for financing and promoting our nation\u2019s exports. I consulted with several important stakeholders including the association of Ghanaian industries, and the banking community to help formulate the concepts to set the stage for a feasibility study for the establishment of the bank.\u201d<\/p>\n \u201cUnfortunately I could not complete that work before I left the ministry. As far as I know, not much has been done\u201d he added.<\/p>\n Graphic Business Fidelity Bank Breakfast meeting, second in its series was focused on bringing together stakeholders and captains of the industries on a way to harness Ghana\u2019s export potential.<\/p>\n <\/p>\n By: Kwaku Anim Boadu\/citifmonline.com\/Ghana
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