Private sector credit recovers by 33.7% in June 2022 - BoG

BoG MPC keeps policy rate unchanged at 19%

20 out of 23 banks extend new credit – BoG Governor

Private sector credit records 3.0% growth in real terms – Report

Governor of the Bank of Ghana, Dr. Ernest Addison, has said credit to the private sector is recovering to pre-pandemic levels, reflecting commercial banks’ portfolio rebalancing.

According to him, in the year-on-year terms, private sector credit increased significantly by 33.7 percent in June 2022, compared to 6.8 percent in the same period of 2021.

Presenting findings after the Monetary Policy Committee held its 107th meeting, Governor Addison said, “in spite of the sustained price pressures, private sector credit, in real terms, recorded a 3.0 percent growth. A year ago in June 2021, real private sector credit had contracted by 0.97 percent.”

“The latest credit conditions survey of banks revealed tightened credit stance on loans to enterprises and households. Notwithstanding these tight credit conditions across the industry, banks’ credit extension improved during the review period,” he added.

Meanwhile, new advances to the Ghanaian economy broadened across the industry, with 20 out of 23 banks extending new credit.

However, total new advances as of June 2022 was GH¢24.6 billion (54.0% year-on-year growth), compared to GH¢15.9 billion (1.0% growth) recorded for the same period of 2021.



MA/ESA