Honour Loan Repayments to Strengthen Confidence in Financial System – BoG
By Praisebell Rosemond Larbi
The Second Deputy Governor of the Bank of Ghana (BoG), Matilda Asante Asiedu, has called on businesses and individuals to strictly honour their loan repayment commitments, warning that rising defaults and the misuse of credit continue to threaten confidence in Ghana’s financial system.
She made the remarks at a sensitisation program organised for members of the Ghana National Chamber of Commerce and Industry (GNCCI) on the Borrowers and Lenders Act. The engagement forms part of ongoing national efforts to deepen credit discipline and promote responsible lending and borrowing practices.
Mrs. Asante Asiedu stressed that Ghana’s credit market cannot function effectively if borrowers fail to meet repayment schedules or divert funds away from their intended purpose. According to her, these actions weaken trust between lenders and borrowers and ultimately constrain the availability of credit to the wider business community.
“We want borrowers to understand that loans must be repaid. Honour your repayment obligations and apply the credit strictly for the purpose for which it was secured. Misuse of loans and increasing default rates undermine confidence in the financial system, and this must change if we want a more resilient economy,” she stated.
She noted that the Central Bank is intensifying education on the rights and obligations of both lenders and borrowers under the Borrowers and Lenders Act. The objective, she said, is to promote transparency, reduce disputes, and ensure that loan contracts are respected across the financial sector.
The President of the GNCCI, Stephane Abass Miezan, welcomed the BoG’s engagement but urged financial institutions to improve access to credit, especially for small and medium-sized enterprises (SMEs). He argued that while repayment discipline is essential, the current lending environment remains difficult for many businesses.
“We are appealing to the Bank of Ghana and financial institutions to make credit more accessible, especially for SMEs who are struggling to meet the high requirements. Businesses need affordable financing to grow, innovate and make a stronger contribution to national development,” he said.
Mr. Miezan added that a more supportive credit framework, characterised by reasonable interest rates, flexible collateral demands and predictable lending terms would enable more enterprises to operate sustainably.
The sensitisation exercise is part of the Bank of Ghana’s broader agenda to improve credit market efficiency, enhance financial literacy and enforce compliance with the Borrowers and Lenders Act. Officials say these efforts will help build a disciplined and transparent financial ecosystem capable of supporting long-term economic growth.
