Ghanaian businesses demand for working capital and inventories higher than other needs – BoG
Most Ghanaian businesses require credit for working capital and inventories than they do for other business needs.
According to a Bank of Ghana survey on loan demand, the enterprises overall net loan demand increased in October 2010 compared with another survey done in August of the same year.
The central bank indicated that the main driver of enterprises loan demand continued to be financing for inventories and working capital needs.
It said demand for credit to finance fixed assets and debt restructuring however remained unchanged.
The report says enterprises demand for loans for plant and equipment stood at 6%, debt restructuring was at 20% and for inventories and working capital it was 58% of the the overall net credit demand.
It also indicated that the Credit Conditions survey it conducted in November 2010 showed some improvement in access to credit by Small and Medium-scale Enterprises for the first time since the beginning of 2010.
By Emmanuel K. Dogbevi