This was revealed in the 2024 Budget and Economic Statement presented by the Finance Minister, Ken Ofori -Atta on the floor of Parliament on Wednesday, November 15, 2023.
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Government allocates GHC 4bn to address NIB, other banking sector challenges - Ken Ofori-Atta
Government has allocated GH¢4 billion in the 2024 budget to address challenges facing the banking sector especially the National Investment Bank (NIB) and other Specialised Deposit-Taking Institutions (SDIs).
Finance Minister, Ken Ofori-Atta
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He said as part of Financial Sector Strengthening Strategy (FSSS), and mitigating the impact of the financial sector clean up, government has made allocations to recapitalise state-owned financial institutions as well as support indigenous banks.
"Mr. Speaker, the Financial Sector Strengthening Strategy (FSSS), which was developed to mitigate the impact of the GoG debt operation on the financial sector, provides for the design of the Ghana Financial Stability Fund (GFSF) as a programme in the Ministry of Finance. It also aims to address outstanding legacy issues following the 2017-2019 financial sector clean-up.
"This Fund offers a solvency window consisting of two distinct sub-funds –namely a US$250 million World Bank supported sub-fund targeted at qualifying banks and SDIs; and a cedi equivalent of US$500 million GoG-funded sub-fund that will help to recapitalise state-owned financial institutions as well as potentially support other indigenously-controlled financial institutions to improve their post-DDEP solvency."
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He said GH¢4 billion has been provided to address challenges facing the National Investment Bank and other distressed Specialised Deposit-Taking Institutions.
" Mr. Speaker, in addition, a provision of GH¢4 billion has been made in the 2024 Budget to address National Investment Bank (NIB), distressed SDIs, and other outstanding legacy challenges in the financial".
The government has been working over the years to merge Agricultural Development Bank (ADB) and National Investment Bank (NIB) to create the National Development Bank due to the struggles of the two banks.
Recently there's been back and forth with the minority and majority in parliament over the deal.
The minority in parliament says government intends to sell off or facilitate the takeover of the National Investment Bank (NIB) by the Agricultural Development Bank
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The Majority Chief Whip, Frank Annoh-Dompreh had challenged the Minority to provide evidence to justify the allegation of the government’s intent to sell off NIB.
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