Minister of Food and Agriculture, Dr. Owusu Afriyie Akoto, says his outfit is making ready a draft invoice to be taken into consideration through cupboard to get industrial banks to lend extra to the agriculture zone.
According to him, the low stage of credit score granted through industrial banks to gamers withinside the agric zone has emerge as a main obstacle to the transformation of the arena withinside the country, regardless of its considerable contribution to countrywide monetary growth.
Speaking on the release of the Agriculture Stakeholder Convening Platform through GIRSAL in Accra on Wednesday, the Minister stated the draft rules could be modelled in comparable ones achieved in lots of Asian international locations, wherein banks are certain to make certain that at the least 20 percentage in their lending is to gamers withinside the agriculture zone.
“Because of the dearth of responses that we have become from the industrial banks, I am making ready a cupboard memo for cupboard to bear in mind rules for agricultural credit score on this country. I understand from my paintings in India a few many years in the past and different Asian international locations that this rules exists wherein for each one hundred cedis of credit score given out through any industrial bank, 20 cedis withinside the case of India must be withinside the agricultural area. So we're making ready this due to the fact if persuasion fails, then we ought to legislate as a authorities. We see that as the largest venture to the march toward reworking agriculture. The banks have to come on board,” he stated.
Over the previous couple of years, there was enhancements in credit score to the non-public zone withinside the beyond few months as monetary interest choices up, however the agriculture zone maintains to get hold of one of the lowest ranges of credit score from banks withinside the country, at 3.5% as at April 2022.
This scenario has been bemoaned through analysts, who're calling at the authorities to take pressing steps to deal with the scenario.
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