Loan Defaulters Local businesses are the worst culprits in repaying loans

The banking sector’s non-performing loans (NPLs) as at 2016 was 6.14 billion cedis. However, NPLs at the end of 2017 increased to 8.58 billion.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The Bank of Ghana (BoG) had said that a lot more local private businesses failed to repay their loans taken from commercial banks in 2017.

In a report by the Central Bank, it stated that the local businesses constituted 80.6 percent of loan default attributable to the private sector for last year compared to the estimated 7.9 percent of loan default attributable to the private sector, recorded by foreign businesses.

The report catalogued operations in the banking industry as at December 2017.

READ ALSO: Ken Ofori-Atta to appear before Parliament over GH¢28.8m contract

The total loans bank gave to their customers increased from 35.4 billion cedis in 2016 to 37.66 billion cedis in 2017.

Meanwhile, the banking sector’s non-performing loans (NPLs) at 8.58 billion cedis as at the end of last year compared to the 6.14 billion cedis recorded in the preceding year.

Despite the increase in loan disbursement for both indigenous and foreign private sector businesses, the local private businesses defaulted most in terms of repaying the loans.

The total loan default attributed to the private sector is 94 percent. However, indigenous private companies accounted for as much as 80.6 percent of total NPLs in December 2017 compared with a share of 78.9 percent in 2016.

READ ALSO: 13 things you cannot do without a TIN in Ghana

In a related development, the foreign private enterprises recorded 7.9 percent. This is a reduction from the 2016 figure of 13.2 percent.

Meanwhile, the public sector’s contribution to the industry’s NPLs increased from 3.2 percent in December 2016 to 5.7 percent in December 2017.

It is however not certain, what factors accounted for the inability of local businesses to repay for loans contracted from banks.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email:

Recommended Articles

Recommended Videos

Top Articles

1 Poverty Gap Ghana’s policies make the rich wealthier – UNbullet
2 In Upper East 2 men killed in daylight bank robberybullet
3 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
4 SSNIT Scandal 10 SSNIT staff with fake certificates dismissed –...bullet
5 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
6 $72m SSNIT Saga Ernest Thompson, 4 others charged with...bullet
7 SSNIT Scandal Ernest Thompson denies knowledge of PWC auditbullet
8 Salaries In 2018 Here are the dates public workers will be...bullet
9 SSNIT Scandal SSNIT spent $140m on ‘partially...bullet
10 Microfinance Finance Institutions BoG to take action...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Support Finance minister buys Kantanka carbullet
9 Entrepreneurship Creating Success Systems | StartUpSchoolbullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet