Over 260 million euros paid in the form of interest subsidies for 128 1D1F companies

The government has disbursed a total amount of GH 260 million in the form of interest subsidies for 128 companies under its flagship program One district, one factory (1D1F).

This was revealed by Trade and Industry Minister John Alan Kyeremanten when Bole / Bamboi MP Yusif Sulemana asked for full information on how much the government spent to subsidize interest on loans to 1D1F companies and the list of beneficiaries.

According to Kyeremanten, participating financial institutions (PFIs) have approved a total loan amount of GH2.69 billion, of which GHS 1.66 billion has already been disbursed to 128 1D1F companies.

As such, the Akufo-Addo administration provides the necessary support to reduce the risk of financial loss.

“Sir. Mr. President, it should be noted that the credit risk associated with said transactions is borne by the PFIs. The interest subsidies granted by the government are only intended to reduce the risk of loans granted to 1D1F companies.

“In this context, the Ministry of Trade and Industry has signed memoranda of understanding with the PFIs which provide in particular that:” Each party undertakes to take all reasonable measures to preserve the confidentiality of the information disclosed, including including, without limitation, requesting that confidential information not be disclosed to third parties or to the public, ”noted the Minister.

He further added that “Mr Mr President, in the light of the above, the Ministry considers it inappropriate to provide the list of beneficiaries with the corresponding amounts, as requested by the Honorable Member.

However, the Minister described PFIs including 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 as organizations involved in referenced operations.