ECOWAS lends $50m to consolidated bank Ghana

ECOWAS Bank for Investment and Development has lend US$50 million to the Consolidated Bank of Ghana.

This is to commemorate the Line of Credit Agreement signed by both banks on 17th May, 2021.

The loan facility of is to support contractors who undertake construction of roads in Ghana.

It is also to support CBG’s expansion project, which focuses on lending to promote road infrastructure.

Speaking at the signing ceremony, President of EBID, Dr. George Agyekum Donkor indicated that road infrastructure is key in socio-economic development of a country, hence his outfit’s investment in the sector.

According to him, this is a step to strengthen ties with countries under the body.

“I am very happy that we’re signing this historic agreement where we’re going to make available to CBG an amount of US$50 million. To be honest, the money has been put on hold for a very long time and we are very happy to collaborate with CBG because the new module we have developed will give money to banks and corporate institutions for lending.”

“We are trying not to go straight to individual promoters because of past experiences. This fund disbursed will support your [CBG] project to support road infrastructure,” he said.

Managing Director of CBG, Daniel Addo assured contractors that the interest rate on the loan will be favourable to them.

According to him, CBG has a reputation of managing risks properly, hence, getting the fund.

“It is absolutely no doubt that these funds will go into road infrastructure. I believe that EBID chose to collaborate with us because they’re very sure that we will do what we say. They also chose to collaborate with us because of the risk management and understanding of the environment here.”

 

Source: Joy Business