Kufuor Praises Golden Age of Business

Accra, June 27, GNA - President J.A. Kufuor on Monday said he was delighted about the Central Bank's decision to review its reserves requirement for Commercial Banks.

"This is highly welcome and it gives us, especially the private sector another strategic space in the volume of credit resources from the banks."

He said, "Businesses will certainly have something to cheer about whilst the Commercial Banks also will have more to invest, all together the broader domestic economy will be better off.

"By and large the business environment becomes attractive for developing business giants and captains" a statement Presidential Spokesman, Kwabena Agyepong issued in Accra said.

The statement said the President shared these feelings saying, "The declaration of Golden Age of Business is taking shape."

Last week the Central Bank announced that with effect from July 1 this year, the Secondary reserves requirement was reduced from 35 per cent to 15 per cent whilst it's holding of 15 per cent of deposits in the form of medium Securities would no longer apply.

The statement said President Kufuor viewed the imminent era of growing Private Sector Credit as coming at the right time when Ghana was adjudged as having created and maintained sound macro-economic environment useful for growth of businesses.

It said, "Government's preoccupation is to establish a sustenance base for wealth creation engineered out of jobs generated in particular by the private sector.

"We are committed to pushing the frontiers of indigenous businesses. It should assume the commanding lead in our quest to deliver prosperity to the people.

"So we are glad in the medium to long-term, the Banks are going to strengthen our hands by advancing more credit facilities to develop enterprises.

The statement said Mr Kwebana Agyepong disclosed that "President Kufuor is still resolved to do more to give meaning to job creation drive as a trigger to wealth creation.

"High expectations abound with the coming on stream of new giant corporate entities such as the VALCO/ALCOA, New Mont, Arab Gulf Oil Company, Compagnie Fruitiere, and Saudi-based Kingdom Holding Company reactivating Ambassador Hotel."

The statement said, "President Kufuor's thoughts are that on attainment of full-blown operation status, these entities would create several job openings for unemployed Ghanaians.

"Indeed, I meant it when I said this is the time to be a Ghanaian. Our philosophy is to liberalise the full energies of the people and create the freedom space for business to thrive. The Central Bank's Prime rate is gradually declining and the banks are responding positively. Life will definitely be made easier soon for all who engage in productive ventures."

"So there will be more money at the banks to do business in addition to credit facilities secured by Government such as the soon to be operationalised Ghana Venture Capital fund which will make available sufficient start up capital", the statement said.

It said President Kufuor urged the productive force to maximise gains from the liberalised economic atmosphere by generating enough wealth necessary to achieve the target of reducing donor dependence. "We are promoting agro-processing and value addition of our natural resources and exports by encouraging people to go into the manufacturing and production sectors of the economy.

"Ghanaians should buy into this vision that is economic diversification, by taking advantage of numerous economic opportunities we are presented with." 27 June 05