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20.07.2005 Business & Finance

ADB accused of undermining devt of livestock sector

GNA

Kumasi, July 20, GNA - Livestock farmers who have been selected for implementation of the pilot phase of the Livestock Development Project have accused the Agricultural Development Bank (ADB) for placing impediments on their way to secure credit facilities for the Project.

They said even though government made them to understand at the introduction of the Project that loans would be granted them without any collateral, the ADB continued to insist on collateral before granting such facilities to them.

This was made known at an emergency meeting of the Kumasi Metropolitan Livestock Development Project Association in Kumasi on Wednesday.

The meeting was to enable them to discuss the long delay of granting the loan facilities for execution of the Project. The African Development Bank (AfDB) is supporting the six-year pilot project introduced by the government in 2003. Seven regions including Ashanti are expected to benefit under the Project.

Speaking at the meeting, Mr Kwadwo Asante, Chairman of the Association said the persistent demand by the ADB for the collateral amounted to an attempt to undermine the laudable Project.

He said the practice by the bank had made it virtually impossible for any of the beneficiary of the Project to secure loans, adding, "If the trend is not quickly checked, the good intentions of the Project will be an illusion".

Mr Asante appealed to the government to impress upon the bank to accept alternative arrangements for the credit facilities instead of the collateral since the farmers would not be able to provide such a facility.

Nana Kwaku Siaw, vice-chairman of the Association said the various training schemes for selected livestock breeders would come to nought if urgent measures were not put in place to grant financial assistance to them.

He said it was not enough to grant them loans but that the government should also ensure adequate logistic supply and technical support for the livestock industry.

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