Former President John Dramani Mahama has advised the central bank to dialogue with financial institutions to offer a 3-month moratorium on debt repayment by small and medium scale enterprises.

His statement comes on the back of the crippling effect that covid-19 has had on various aspects of the economy.

John Dramani Mahama made the remark at a brief meeting held to donate some food items to 20,000 households in the country.

According to him, “a further measure, which would go a long way to cushion SMEs and individual Ghanaian families, would be for the Bank of Ghana to open a dialogue with the banks and financial institutions to offer a 3-month moratorium on payment of debts to borrowers.

Although banks have already fashioned out relief measures for customers, more could be done for the SMEs.

“I understand one bank has already voluntarily announced such a concession. This will be helpful at a time many Ghanaian businesses are shut and breadwinners of families have had to stay at home and cannot earn an income.” The former president said.

Mahama advises government to be diligent in spending IMF’s $1bn loan

The IMF on Monday, April 13, 2020, approved a US$1 billion loan facility for Ghana.

John Dramani Mahama announcing his donation of food items to 20,000 households on Facebook today, advised government to be diligent in applying the loan.

“The fast track approval by the IMF of the highly concessional Rapid Credit Facility is therefore timely and very welcome. This will help cushion the economy from the dangers of recession. Our economy has revealed from this COVID-19 stress test that it is still fragile and we need to be prudent in how we manage going forward. We must also be diligent in how we apply the US$1 billion facility as the various tranches are released.