Government has secured $250 million to kickstart operations of a new financial institution National Development Bank (NDB), the Finance Minister has said.
Ken Ofori-Atta told Parliament on Wednesday during his 2020 Budget presentation that feasibility study for the establishment of the Bank has been completed.
He spelt out the specifics of the study explaining the rationale, mandate, business model, legal and regulatory framework, ownership, governance and sustainability of the Bank has been completed.
“Government is working with the World Bank and other development partners to capitalize the bank in 2020 for it to commerce operations.
“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 NDB will be an independent institution with a strong corporate governance framework and “would be globally rated to enable it to leverage foreign private capital for industrial and agriculture development in the country.”
According to him, government will also provide periodic dedicated funds for intervention in key areas of the economy such as large scale agro-processing, housing, through various schemes and funds as needed for economic and social development and jobs.
“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,” he said.
He added that “the National Development Bank will also lend through specialized banks to key anchor industries at the Metropolitan, Metropolis and District Assemblies level to support the governments IDIF initiative.”
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