Aside from this, the Association has also announced a GH₵3 billion support package by way of loans to players in Ghana’s pharmaceutical industry.
This was contained in a press release issued and signed by the Association Chief Executive Officer of the Association, D. K. Mensah.
This rate cut shall cover not only the period of the pandemic but banks recognize that it will take businesses and individuals sometime after the end of the pandemic to retool and restock to achieve the semblance of normalcy – the rate cut will therefore cover the remaining tenor of the facility.
“Interest rate cut affects all existing local currency denominated loans and for all new loans to be sanctioned by member banks”, the statement read.
Before this, the Bank of Ghana had earlier reduced the Monetary Police Rate from 16 to 14.5%, to enable banks reduce interest rate in the wake of the challenges posed by the global pandemic.
Prior this decision by the Ghana Association of Bankers, they had also announced a support package of ten million cedis towards the government’s COVID-19 fight.
“Banks agree to a general 200 basis points interest rate cut on all existing local currency denominated loans and for all new loans to be sanctioned by member banks.
The Association also announced some other interventions to support its clients
“Given the sanctity of customer/data privacy issues, banks have agreed to hold bi-lateral discussions with customers who have loan exposures with respective banks so a more tailor-made solution can be agreed with their bankers.
“We advise customers to exercise restraint during this exercise as delays may be expected as banks will be using existing lean staff on roll to begin individual discussions on loan extensions, restructuring or other solutions respective banks will proffer to lessen the impact the virus may have caused,” the statement added.
Furthermore, the association has urged customers to make good use of the digital banking platforms made available by all the banks to enable banking halls to handle limited banking services.