BoG warns borrowers to repay loans and use credit responsibly

The Bank of Ghana has called on borrowers across the country to remain disciplined in the repayment of loans and to ensure that all credit facilities are applied strictly for the purposes for which they were secured. According to the Central Bank, responsible borrowing and timely repayment are essential to safeguarding the stability of the financial system.

Speaking at a sensitisation workshop on the Borrowers and Lenders Act for members of the Ghana National Chamber of Commerce and Industry, the Second Deputy Governor, Matilda Asante Asiedu, stressed that the growing accessibility of credit comes with heightened responsibility.

“With increased access clearly comes greater responsibility and accountability, and borrowers must understand the agreements they sign,” she noted. “Honour the repayment obligations and apply the loans purposefully to strengthen your businesses.”

Mrs Asante Asiedu warned against the misuse of credit, particularly the diversion of business loans for personal luxury. She emphasised that such practices undermine growth and weaken the financial ecosystem.

“The idea is not to take the loan and buy the next beautiful car,” she cautioned. “It is to invest the loan in the business because if the business grows, the probability that you can then buy that beautiful car later is very high.”

The President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, welcomed the Central Bank’s initiative but urged it to go further by improving credit accessibility. He explained that although interest rates are gradually declining, many businesses still struggle to access funding at the point of need.

“The challenge is not only that interest rates are coming down. It is also the issue of access,” he said. “If something is cheap but you cannot get it, then it becomes a zero-sum game. So in as much as the Bank of Ghana is working hard to lower the cost of credit, please also ensure that it is accessible to those of us in industry and business.”

The workshop forms part of the Central Bank’s ongoing efforts to strengthen borrower awareness, curb loan defaults and improve the overall health of Ghana’s credit market.