The Consolidated Bank of Ghana (CBG) has been loaned an amount of $50 million by the ECOWAS Bank for Investment and Development (EBID).
The loan facility to CBG which comes on the back of a Line of Credit Agreement signed by the two banks on May 17, 2021, is to provide support to contractors awarded road construction contracts by the government.
The facility reinforces CBG’s project of lending to contractors to promote road infrastructure in the country.
Speaking at the signing ceremony, President of EBID, Dr George Agyekum Donkor indicated that road infrastructure is key to the socio-economic development of a country, hence his outfit’s investment in the sector.
Adding the loan facility to CBG is a step to strengthening ties with countries under the body.
“I am very happy that we’re signing this historic agreement where we’re going to make available to CBG an amount of $50 million. To be honest, the money has been put on hold for a very long time and we are very happy to collaborate with CBG because the new module we have developed will give money to banks and corporate institutions for lending.”
“We are trying not to go straight to individual promoters because of past experiences. This fund disbursed will support your [CBG] project to support road infrastructure,” he said.
Managing Director of CBG, Daniel Addo assured contractors that the interest rate on the loan will be favourable to them.
According to him, CBG has a reputation of managing risks properly, hence, getting the fund.
“It is absolutely no doubt that these funds will go into road infrastructure. I believe that EBID chose to collaborate with us because they’re very sure that we will do what we say. They also chose to collaborate with us because of the risk management and understanding of the environment here,” Mr Addo averred.
