Firms hit by COVID-19 to benefit from GHC2 billion in loans at affordable rates
The 2020 Mid-year Budget Review announced provisions to cushion businesses which have been badly damaged by the disease
The government has set up a guarantee scheme to offer loans at affordable rates to businesses affected by COVID-19.
A whopping GHC2 billion kitty has been set aside to enable struggling businesses to borrow from banks at longer tenor.
This was disclosed by the Minister for Finance, Ken Ofori-Atta, during his presentation of the Mid-year Budget Review to Parliament on Thursday.
The GHC2 billion guarantee scheme is intended to help save sinking businesses and retain jobs.
The coronavirus pandemic has caused many companies to lay off their workers in order to survive. Many other businesses are simply collapsing.
Response to distress
The Finance Minister said the establishment of the guarantee scheme shows government’s care for Ghanaian business.
“It takes a caring government to establish a guarantee scheme of up to GHC2 billion to enable businesses to borrow from banks at more affordable rates and at longer tenor to save their business and retain jobs,” Ofori-Atta said.
The government has also increased the Coronavirus Alleviation Programme Business Support Scheme (CAPBuSS) by GHC100 billion to cushion business.
“It takes a caring government to hear the distress of business and respond with support to small and medium businesses to the tune of GHC600 million in order to help them survive and thrive in these uncertain times.
“The CAPBuSS will be increased by GHC150million to help many more MSMEs, including GHC50million for the creative arts industry and the media,” the minister added.
GHC900 million for trainee teachers and nurses
Ofori-Atta also told MPs that the government has spent over GHC900 million on trainee nurses and teachers.
This is how much has gone towards allowances for trainees between 2017 and 2019, he said.
“Ours is the government for the ordinary people of Ghana. That is why since 2017, we have spent a total GHC900,531,258 in keeping nearly 100,000 trainee teachers and trainee nurses in training,” he said.
The Finance Minister added that the free food distributed to the poor and vulnerable during the lockdown period cost GHC54.3 million.
E A Alanore
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