Finance Minister has asked the management of Development Bank Ghana to manage its affairs prudently.
Speaking at the official launch of the in Accra on Tuesday (14 June), Ofori-Atta said “DBG is designed to be financially sustainable”.
The official launch has paved the way for the bank to officially begin operations.
“Total available resources for the bank both equity and debt is currently about US$750 million. Our equity commitment is US$250 million out of which US$200 million has been paid, while the German Government through Kfw has given DBG a subordinated debt of 46.5m Euros and an additional three million Euros grant for technical assistance. The World Bank and EIB have given the bank US$225 million and 170m Euros respectively. AfDB have also given the government US$40 million grant which has been given to the bank as equity,” the Finance Minister said.
“It is our firm expectation DBG will manage it affairs prudently, that soon it will be able to go to the market, both domestic and international, to raise its own funds on the basis of its balance sheet. This, therefore, requires the Board and Management to work hard toward getting an international rating for the Bank within the shortest possible time,” he said.
The operations of the bank include sourcing of funds on the domestic, regional and international capital markets by issuing bonds and diaspora instruments and by borrowing directly periodically.
The Bank of Ghana in 2021 handed over the license for the Development Bank.
The Minister of Finance Ken Ofori-Atta announced that with the establishment of the Development Bank Ghana (DBG), Government will provide a powerful response to a long-standing desire of our businesses for easier access to medium and long-term loans at affordable interest rates.
Not only will DBG, as a wholesale bank, provide loans to financial institutions, it will also provide partial credit guarantees to complement the efforts of GIRSAL in agriculture and agribusiness,” he said when he presented the 2022 budget statement before parliament in November 2021.