Development Bank Ghana (DBG) has received a seed fund of US$70million for its partial credit guarantee scheme, which will provide an additional layer of support for participating financial institutions (PFIs) to better manage risks associated with loan defaults. The World Bank Group contributed US$50million of the amount, with the remaining US$20million coming from KfW Development Bank of Germany.
This scheme is expected to boost investments in high-risk sectors of the economy as the PFIs continue to serve the SME sector effectively while sharing the risk of the investment with DBG, and is in line with the bank’s plan of encouraging banks to use their own funds to invest in productive sectors of the economy.
Disclosing the achievement as part of DBG’s role in working with the banking sector to resuscitate the country’s economy, CEO K. Duker, indicated that the partial credit guarantee is scheduled to commence operations in the third quarter of this year.
Source: Ghana News Agency