Facebook Instagram Linkedin Twitter Youtube
  • Home
  • Economy
    • Green Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Companies
    • Education
    • Energy
    • Fisheries and Aquaculture
    • Health
    • Insurance
    • Features
  • Opinions
    • Dr. Maxwell Ampong
    • Alberta Quarcoopome
    • Nana Yaa Ofori-Atta
  • Reports
  • BFT TV
  • Events
    • Ghana Economic Forum
    • African Energy Conference
    • The Money Summit
    • Youth Economic Forum
  • Subscribe
  • Sign In
Search
Monday, July 7, 2025
Facebook Instagram Linkedin Twitter Youtube
Sign in
Welcome! Log into your account
Forgot your password? Get help
Create an account
Privacy Policy
Create an account
Welcome! Register for an account
A password will be e-mailed to you.
Privacy Policy
Password recovery
Recover your password
A password will be e-mailed to you.
The Business & Financial Times
  • Home
  • Economy
    • Green Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Companies
    • Education
    • Energy
    • Fisheries and Aquaculture
    • Health
    • Insurance
    • Features
  • Opinions
    • Dr. Maxwell Ampong
    • Alberta Quarcoopome
    • Nana Yaa Ofori-Atta
  • Reports
  • BFT TV
  • Events
    • Ghana Economic Forum
    • African Energy Conference
    • The Money Summit
    • Youth Economic Forum
  • Subscribe
  • Sign In
Home Business Set-up support mechanism for private sector – Prof. Quartey
  • Business
  • Companies
  • Economy
  • Editors' picks
  • Headlines
  • News
  • Top Headlines

Set-up support mechanism for private sector – Prof. Quartey

February 23, 2023
0
Facebook
Twitter
WhatsApp
Email
Print
    mid-year budget cedi

    Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey, has called on government to provide support mechanisms for businesses and individuals that may be affected by the Domestic Debt Exchange Programme (DDEP).

    With the debt exchange programme expected to have negative impacts on the private sector, particularly access to capital, cost of borrowing and the wider economy, Prof. Quartey highlighted the lack of support mechanisms to butress businesses.  In contrast to the private sector, the Ghana Financial Stability Fund is being established to provide an additional layer of protection for the financial sector, including exclusive liquidity arrangements with the central bank to safeguard the banking sector.

    “Hopefully, banks will be supported when they are in distress. But what about individuals or bondholders if the debt is stressed or the company has bought a bond and gets distressed? What is the support mechanism? I think we need to look at this,” he stated.

    He spoke in Accra during an event organised by the Ghana National Chamber of Commerce and Industry (GNCCI) on the topic ‘Impact of the DDEP on the private sector’, and expressed concern that the DDEP may lead to a liquidity crisis and high interest rates – warning that without proper support mechanisms in place, the programme could have negative social consequences.

    Available data suggest that a weakened banking sector could impair financial intermediation – leading to hesitance on the part of banking institutions to provide funds for individuals and businesses. This would then threaten future economic growth and development. Certainly, the present economic challenges may compromise the ability of individuals and businesses to pay their loans.

    To avoid this situation, Prof. Quartey suggested that government could set up a fund to support individuals and businesses that may suffer losses or be out of business due to its debt operations. “Similarly, we can also set up a fund so any business that is stressed can get support and advice from it. We may need other forms of support that will keep businesses afloat. I think that should be done.”

    Prof. Quartey also referred to the Programme of Action to Mitigate the Social Costs of Adjustment (PAMSCAD) in the past, when the World Bank and International Monetary Fund agreed to support people and businesses affected by similar programmes. He emphasised the importance of mitigating factors for the private sector to avoid adverse effects.

    Introduced in 1989, the PAMSCAD provided support for people and businesses that were affected by economic adjustments.

    A businessman, who pleaded anonymity, told the B&FT that the DDEP poses a major problem and could lead to negative social and economic consequences if pre-emptive measures are not taken. He said: “This is a major problem that demands attention. This initiative will have a significant impact on a large number of individuals, and without adequate support systems in place there may be negative social and economic repercussions”.

    Another businessman, who also requested anonymity, shared the same concern and agreed with Prof. Quartey’s suggestion to consider how to assist businesses and individuals affected by the DDEP.

    “Without assistance, a lot of companies and people will fail – which would be disastrous for the economy. I really believe Professor Quartey is correct. We need to consider how we might assist businesses and individuals who could be impacted by this initiative,” he said.

    Post Views: 51
    VIABy Joshua Worlasi AMLANU joshua.amlanu@thebftonline
    SOURCEthebftonline.com
    • TAGS
    • Domestic Debt Exchange Programme (DDEP)
    • Institute of Statistical Social and Economic Research (ISSER)
    • private sector
    • support mechanism
    Facebook
    Twitter
    WhatsApp
    Email
    Print
      Previous articleFish dumping at sea still prevalent
      Next articleGCM-TEF supports 68 UMaT students with GHȻ340,000
      Juliet Etefe

      RELATED ARTICLESMORE FROM AUTHOR

      News

      President of Pure Earth will lead high-level delegation

      News

      Gov’t treatment of Zoomlion threatens investor confidence – UPSA lecturer warns

      News

      Consumer Electronics importers visit Energy Commission

      LEAVE A REPLY Cancel reply

      Log in to leave a comment

      Read Today's E-Paper










      Recent Posts

      Stanbic Bank partnering FinTech to co-create innovative for SMEs

      WAICA Webinar billed for April 21

      Africa’s call for US$120bn IDA replenishment faces resistance   

      GEPA plans export increase through coconut revitalisation project

      Over 1.5m youth unemployed, uneducated or untrained – report

      Most Popular

      President of Pure Earth will lead high-level delegation

      The President and Chief Executive Officer of Pure Earth, along with implementing partners and funding advisors, is scheduled to visit Ghana from 8th to...

      Gov’t treatment of Zoomlion threatens investor confidence – UPSA lecturer warns

      The recent decision by government to review or decentralize sanitation contracts with Zoomlion Ghana Limited could send the wrong signals to investors and disrupt...

      Consumer Electronics importers visit Energy Commission

      Executives from the Consumer Electronics and Home Appliances (CEHA) Alliance of Ghana paid a courtesy call on the Acting Executive Secretary of the Energy...

      Aquamet Technologies: A start-up powering sustainable aquaculture with smart innovation

      In Ghana where fish is a staple in nearly every household, the aquaculture sector plays a critical role in national food security. Despite producing...

      Useless Column with Mawuli Zogbenu: ‘Armpit Powers’

      A roaming hunter always meets a roaming antelope! The reason I don’t like staying out late in the night. Don’t think about it; just...

      About Us

      • About B&FT
      • Contact Us
      • FAQ
      • Webmail

      Legal & Privacy

      • Term & Conditions
      • Privacy Policy
      • Copyright
      • Cookies

      Services & Tools

      • Today's E-Paper
      • Individual Subscriptions
      • Group Subscriptions
      • Advertise
      • Android App
      © The Business & Financial Times. Copyright 2025. All rights reserved.
      MORE STORIES
      News

      President of Pure Earth will lead high-level delegation