West African central banks, keen to help boost economic growth in their various countries, have decided to set up a Credit Guarantee Fund by May 1996 to stimulate capital flow in the region. Bank governors, meeting for four days in the Gambian capital Banjul, also called for states in the region to make greater progress on achieving a single monetary zone by the year 2,000.

"To this end, they emphasised the continued maintenance of prudent macro-economic policies," they said in a communique issued after the end of their meeting on Sunday.

They listed such measures as "adoption of market-determined exchange rate policies as well as the removal of existing tariff and non-tariff barriers to trade, investment and capital flows within the region." The governors met in varying capacities over the four days. As the Exchange and Clearing Committee, they "decided to reinforce the clearing mechanism by the establishment of a Credit Guarantee Fund not later than May 1996, to eliminate all of payment arrears which have severely hampered the proper functioning of the West African Clearing House and to develop monetary cooperation."

As the Committee of Governors of Central Banks of the Economic Community of West African States (ECOWAS) they urged member states to redouble their efforts to realise the group's Monetary Cooperation Programme "in order to achieve the objective of a single monetary zone" by the year 2,000.

The Central Bank of West African States and the central banks of Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mauritania, Nigeria and Sierra Leone all attended.