The Bank of Ghana (BoG) has announced that it will commence giving incentives to banks that lend toward environmentally friendly projects.
Some of the incentives Citi Business News has gathered include a reduction in the cost of lending rates for the banks from the Central Bank.
According to the Bank of Ghana it will on a six-month basis, assess the various environmentally friendly initiatives of the banks in the country and will reward those that pass the assessment.
Speaking to Citi Business News on the matter, Second Deputy Governor of the Bank of Ghana, Dr. Johnson Asiama said the Bank of Ghana is working towards promoting sustainable banking practices among commercial banks in the country.
“The whole basis of their lending activities, so more or less it’s not just about lending to the mining sectors it is about them looking at all the sectors, so if they are lending to agriculture, there has to be environmental considerations and so on”.
“We are also working on some specialized lending schemes which will be managed by the Central Bank but then commercial banks can access this and these can be administered for businesses all in an attempt to put emphasis and in an attempt to provide for environmental risks”
Source: citibusinessnews.com