Banks Withhold Credit To Customers Because of Election Petition

Some banks in the country are withholding the granting of loan facilities to their customers due to the uncertainties surrounding the unpredictable outcome of the election petition case pending at the Supreme Court. It has also been reported that there have been heavy withdrawals of money from the banks by customers. In the words of one bank manager who pleaded anonymity, “the monies go out but do not return as one would have expected...” The pattern has been ongoing over a period exceeding one month now and it appears the development may continue till after the case is concluded. The election petition case has been running since April and it is expected that a ruling on the matter will soon be made after the parties involved file their written addresses on Tuesday. The implications of the development on the banking industry and their customers have serious knock-on effects on the economy. There has been some level of growing concern among the business community over the implication of the case on business activities with some industry players asserting the case is having a negative effect on investor confidence and may drive away external investors. But the CEO of the Ghana Investment Promotion Centre, Mawuena Trebah, in an interview with Citi Business News on the matter dismissed the assertions. Earlier on the Bank of Ghana (BoG) downplayed fears that the ongoing election petition case before the Supreme Court was having a negative toll on investor confidence in the country. Governor of the BoG, Dr Henry Wampah, disagreed with the perception saying, he didn’t believe the court case will have any impact on investor confidence, adding that “I don’t believe the external investors are less interested in investing in Ghana because of the case we have not seen that...” But the Executive director of the Centre for Policy Analysis, Dr Joe Abbey, disagrees as according to him, the case is having a toll on the country.