Next year will see the coming into existence of a new bank, National Development Bank (NDB), the Minister of Finance has revealed.
Ken Ofori-Atta says already feasibility study for the establishment of the bank, specifying its rationale, mandate, business model, legal and regulatory framework, ownership, governance and sustainability has been been completed.
He made this known in Parliament on Wednesday, November 13 when he delivered the 2020 economic statement and financial policy of government.
He said $250 million has been secured from the World Bank for the start of operations of NDB in 2020.
“The National Development Bank as envisioned will refinance credit to industry and agriculture as a wholesale bank; and also provide guarantee instruments to encourage universal banks to lend to these specific sectors of the economy,” he said.
Mr Ofori-Atta said the new bank, which comes after the establishment of Consolidated Bank, Ghana (CBG) in 2017, will be independent with a strong corporate governance framework.
He added that it will be globally rated ‘to enable it leverage foreign capital for industrial and agriculture development in the country”.
“It is expected that the National Development Bank will provide cheaper and long term funding for the growth and expansion of key companies operating in the agriculture and industry sectors.”
The Bank is also expected to lend to key industries at the local levels through specialised banks “to support the government’s 1D1F initiative”.