SMEs will still benefit from credit guarantees under EXIM Bank – Eximguaranty Board Chair

Small and Medium Enterprises (SMEs) will continue to benefit from credit guarantees under EXIM Bank, as Eximguaranty Company Limited enters the final stage of its integration with other institutions to become EXIM Bank.

Board Chair of the about-to-be-defunct company, Felix Ntrakwah, noted that EXIM Bank knows what Eximguaranty does for SMEs and the cocoa sector and he does not expect the new company to ignore its [Eximguaranty] core principles.

“I do not expect EXIM Bank to give up on SMEs. There is a transition team that is working on the details and EXIM Bank knows the work Eximguaranty has been doing. They also must respond to government policy. How they go about it is what the transition team is working on.

EXIM Bank has to go according to government policy but our mandate of guaranteeing businesses is well known and I expect that they would adapt our mandate in addition to theirs. They have a board and their policies but they will take into account what this company has been doing,” Mr. Ntrakwah said at the company’s last annual general meeting in Accra.

Due to the integration of Export Finance Company, Eximguaranty Company Limited and Export Trade, Agricultural and Industrial Development Fund (EDAIF) into EXIM Bank, Mr. Ntrakwah noted that the company did not undertake any serious work.

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“In terms of performance, there wasn’t good business and therefore there is not much to talk about. We are almost at the end of the integration process of Export Finance Company, EDAIF and Eximguaranty Company Limited into EXIM Bank. It has been one of preparing to end operations instead of engaging in serious business activities.

Those who matter in the process have been very cooperative including the finance ministry. I do not expect that by the end of the year Eximguaranty will still be operating as such but will be part of EXIM Bank,” he added.

A total of 19 jobs will be lost after the integration. Mr. Ntrakwah explained that already, nine members of the team have left with another 10 to follow after the integration is completed.

“This company will cease to carry on business but the process of integration and bringing the life of this company to an end will go on. Officials are already working behind the scenes to bring this company to an end,” he added.

Eximguaranty’s over 20 years existence is expected to come to end this year. The company has been at the forefront of extending credit guarantees to SMEs and cocoa sector players that allowed them to access loans from banks.

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