Govt assures of making Financial Stability Fund more efficient

The government has indicated that it is working to make the Financial Stability Fund more efficient to support banks which have been impacted by the Domestic Debt Exchange Programme.

According to the government, this is crucial as the fund will provide temporary liquidity and solvency to licensed financial companies.

Speaking at the launch of the Financial Education Campaign in Accra, the Deputy Minister of Finance, Abena Osei Asare said government is committed to building resilience in the financial sector.

“The Monetary Policy Committee in their latest release reveals that the banking industry remains relatively stable despite recording some loses from the Domestic Debt Exchange Program,” she said.

“However, to further strengthen the sector and provide stability back stock to the Industry, government in collaboration with the financial sector regulators is working on the Ghana Financial Stability Fund. This is a standby liquidity and solvency financing mechanism to help mitigate the potential impact of government debt operations on the financial sector,” he explained.

“The Fund will provide temporal liquidity and solvency support to licensed financial institutions that may face liquidity and solvency challenges arising from their participation in the Domestic Debt Exchange Program,” she noted.