HomePoliticsOver GH¢260 million disbursed as interest subsidies for 128 1D1F companies

Over GH¢260 million disbursed as interest subsidies for 128 1D1F companies

Alan John Kyerematen

The government has spent over GH¢260 million as interest subsidies on 128 One District, One Factory (1D1F) Companies.

This was revealed by the Minister for Trade and Industry, John Alan Kyerematen, who said over the last four years of the Akufo-Addo administration, a total amount of GHS 260,961,056.42 has been disbursed as interest subsidy for 128 1D1F Companies to support loan facilities granted to the Companies by Participating Financial Institutions (PFIS).

Responding to a question by the Bole/Bamboi Member of Parliament, Yusif Sulemana, on how much has been expended on subsidizing loan interests for One District One Factory companies, and the list of beneficiaries with matching amounts in the last four years, Mr Kyerematen said the PFIs have approved loans totaling GHS 2.69 billion on the back of the interest subsidies, of which GHS 1.66 billion has already been disbursed.

“PFIs involved in the transactions under reference include GCB Bank Limited, Prudential Bank Limited, Société General, Universal Merchant Bank, ADB Ghana Limited, Ecobank Ghana, Standard Chartered Bank, Absa Bank Ghana Limited, CAL Bank Limited and Stanbic Bank Ghana,” he told Parliament.

“Mr Speaker, it is worth noting that the lending risk associated with the said transactions is borne by the PFIs. The interest subsidies provided by government are only meant to de-risk the loans extended to the 1D1F Companies,” he said.

“Against this background, the Ministry of Trade and Industry has signed MoUs with the PFIs which provide inter alia that: “Each Party undertakes to take all reasonable steps to preserve the confidentiality of information disclosed, including without limitation requesting that the confidential information shall not be released to third parties or the public.”

“Mr Speaker, in the light of the above, the Ministry considers it inappropriate to provide the list of beneficiaries with matching amounts as requested by the Honourable Member,” the Trade Minister told the House.

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