Eximguarantee Company celebrates 10th anniversary
Accra, March 22, GNA-Eximguaranty Company Ghana would this year celebrate its 10th anniversary as a financial service meant to facilitate the building of linkages between small and medium enterprises and the formal financial institutions.
Documents released by authorities of the Company to the Ghana News Agency in Accra indicated that the venture was established in April 1994 by the Bank of Ghana (BOG) to play the catalyst role by assisting financial institutions to provide financing to enterprises mainly engaged in production and exports in order to boost foreign exchange earnings for the country.
The rational for setting up Exim was to increase financial intermediation in the economy and to extend credit facilities to private entrepreneurs with inadequate or no collateral security.
The Company facilitates increased utilization of foreign credit lines, which are made available to exporters and assist to improve the liquidity of financial institutions that participate in these schemes. Exim benefits to clients include easy access to credit to fulfill export orders and meet working capital requirements and access to medium to long-term capital for the acquisition of fixed assets.
Risk of default is shared between Exim and the financial institution and improves the liquidity position of financial institutions.
Products and services of the Company include bid bonds, advance payment guarantees, performance bonds, seed fund guarantee, project monitoring and business advisory services.
Eximguaranty Company had signed a Memorandum of Understanding with the Guarantee Fund for Private Investments in West Africa (GARI) to serve as the arrowhead of its operations in Ghana The key benefit of this agreement is that private sector operators including exporters seeking medium and long term financing are better placed to access GARI's guarantees through Exim and their bankers. GARI had provided two million dollars as coverage guarantee. Clients if the Company are supposed to comply with monetary regulations and provisions of the Banking Law (PNDCL 225) and should members of the Clearing House of the BOG.
Non Bank financial institutions shall comply with the Non-Bank Financial Law (PNDCL 328) and comply with monetary measures and other requirements of the BOG and must have consistent and diligent credit assessment and loan recovery policies and have adequate technical, financial and administrative capacity to manage lending. Over the past 10 years the Company's clientele level has reached 1,109 while volumes and value in business has reached a level of over 213.3 billion cedis.
Shareholders of Eximguaranty are: Bank of Ghana, Financial Investment Trust, Social Security and National Insurance Trust, National Investment Bank and the Trust Bank. 22 March 05