BoG urges businesses to unlock collateral for easier access to credit

Alexander Koomson, speaking on behalf of the Head, Collateral Registry Department at BoG, said limited awareness of the country’s credit infrastructure remained one of the factors constraining businesses from fully leveraging their assets to secure financing.

By Florence Afriyie MensahKumasi, Sept 30, GNA – The Bank of Ghana (BoG) has urged businesses, particularly small and medium-sized enterprises (SMEs), to take advantage of the country’s collateral registration system to improve their access to credit and negotiate better lending terms with financial institutions.

Mr Koomson explained that the enactment of Act 1052 and the operationalization of the Collateral Registry Department were intended to address longstanding challenges in the credit market, including inadequate acceptable collateral, information asymmetry, and weaknesses in the enforcement of security interests.