Pulse.com.gh logo
Go


New EXIM Bank Gov't to merge EDAIF, Eximguaranty and EFC into new EXIM bank

Parliament on Wednesday March 2 passed the Ghana Export/Import Bank (EXIM) bill into law.

  • Published:
Finance Minister Seth Terkper play

Finance Minister Seth Terkper

Following the passage of  the Ghana Export/Import Bank (EXIM) bill into law, government is set to engage a transaction advisor to guide the integration of EDAIF, Eximguaranty and Export Finance Company into the new Ghana EXIM, the Business and Financial Times reported on Friday citing a report by the Business Committee of Parliament.

Parliament on Wednesday March 2 passed the Ghana Export/Import Bank (EXIM) bill into law.

The bill when assented to by president John Mahama is expected to act as an intermediary between national governments and exporters to issue export financing.

The transaction advisor is expected to value the equity stake of Eximguaranty and Export Finance in order to establish the value of minority interest, the B&FT said.

It will also advise on negotiations with minority shareholders of Eximguaranty and Export Finance Company, and also effect the transfer of assets and liabilities of affected institutions to the EXIM Bank. the B&FT said.

Share holding, financing and governance structure of the three institutions have been reviewed, according to the finance minister Seth Terkper.

He indicated that the review’s outcome showed that with the exception of Ghana Export Promotion Authority (GEPA) -- which is primarily an export-promotion agency, the functions of the other three, Export Finance Company Limited (EFCL), Eximguaranty Company Limited (ECL) and Export Development and Agricultural Investment Fund (EDAIF), fit into the proposed functions of the Ghana EXIM; and as such will be integrated into the Ghana EXIM, B&FT said.

“GEPA will however continue to operate as a stand-alone organisation with an expanded mandate for export promotion and development,” he said.

Mr. Terkper added: “Despite efforts through initiatives such as the Export Financing and Guarantee Institution, Export Development and Agricultural Investment Fund (EDAIF) among others, Ghana’s export financing institutions have not been able to make a meaningful impact on the export sector because of poor capitalisation and a vague definition of their mandates”.

READ MORE

President Mahama during his State of the Nation address to parliament said the EXIM Bank would move the country from import-dependent to a large-scale exporter, adding that "The primary purpose [of the bill] is to finance exports, notably light industrial products."

He said the establishment of the bank is "part of our agenda to achieve a value-added and export-led economy."

The bank will support exporters to compete globally by providing insurance and finance facilities to support their overseas activities.

In addition, the bank will improve the capacity of the country to produce goods and services in the competitive international marketspace.

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: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 2018 Budget Review Prepare to pay 35% tax if you earn 10k and abovebullet
2 Taxes In Ghana Don't rejoice; VAT has been hiked through ‘backdoor’ –...bullet
3 2018 Budget Review Gov’t imposes tax on luxury vehiclesbullet
4 Kwabena Duffuor Official: Duffuor’s assets not being auctionedbullet
5 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
6 Investment banks in Ghana Top 5 investment banks in Ghana and...bullet
7 Economy Of Ghana Finance Minister presents mid-year budget...bullet
8 Uche Ofodile Captain Planet’s wife heads MTN Liberiabullet
9 Education Top 5 private high schools in Ghana according...bullet
10 Full Text 2018 mid-year budget review presented by Ken...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Support Finance minister buys Kantanka carbullet
5 Money Alert Meet Africa's richest womanbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
8 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
9 Video We are determined to move Ghana beyond aid - Bawumiabullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet

Business