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European bank provides loan for Ghana's private businesses

Xinhua, May 6, 2015 Adjust font size:

The European Investment Bank (EIB), European Union's long-term lending institution, has agreed to provide 10-million euros to support investment by private businesses in Ghana.

The money is to be channeled through uniBank, an indigenous bank in Ghana.

The new lending program will also help further develop the financial sector in the country, the EU delegation to Ghana said in a statement reaching Xinhua on Wednesday.

The EIB's new lending agreement with uniBank Ghana is the third scheme to support investment in the country under a 80-million euro credit facility launched in 2013 to improve access to finance by companies in Ghana.

The new credit line by the EIB will allow also uniBank Ghana to provide loans in both euros and U.S. dollars, with a tenor of up to eight years.

This represents a much longer maturity than typically available in Ghana.

Earlier, credit lines under the EIB initiative were agreed with Société Générale Ghana and Ecobank Ghana.

The Vice-president of the EIB, Pim Van Ballekom, said over the last 40 years, the bank had supported private sector investment across Ghana, both directly and in cooperation with local banks.

He said the new engagement launched on Wednesday with uniBank Ghana would build on the success of similar cooperation with leading banks across Africa and support important new corporate investment in Ghana.

"This significant new lending program will both increase investment by the private sector and strengthen the role of local banks. The EIB is committed to supporting public and private sector projects that support economic growth and improves lives across Africa," he said.

The Chief Executive Officer of uniBank, Felix Nyarko-Pong, thanked the EIB for the facility and also assured the bank's customers that it was in a much stronger position to meet their banking and financial needs.

The ambassador of the EU Delegation in Ghana, William Hanna, said the support to uniBank, together with the facilities already provided to Société Générale and Ecobank to improve access to finance for small and medium enterprises (SMEs), were crucial since SMEs were the backbone of Ghana's economy and by far the biggest job provider in the country.

Lending under the scheme will support investment in agriculture, manufacturing, construction, transport, education, and healthcare, among others.

The EIB has provided nearly 600 million euros to support public sector projects and private sector investment in Ghana since the first operation in 1976.

Last year, the bank provided more than 2.5 billion euros for public and private investment across Africa. Endi