The Ministry of Trade and Industry has dispelled claims that it has not fully accounted for GH¢269 million allocated for interest subsidy payment for loan facilities under the One District One Factory (1D1F) initiative.
According to Ranking Member on the Select Committee on Trade in Parliament, Emmanuel Kofi Buah, the Ministry has not rendered account but the Ministry has stated that the comments are “misleading” and “totally inaccurate.”
In a press statement signed by Chief Director, Patrick Yaw Nimo, the Ministry indicated that it has submitted full information on the application of GH¢269 million allocated for interest subsidy payment for loan facilities granted by selected Participating Financial Institutions (PFIs).
The Ministry explained this was executed upon request.
The PFIs include GCB, ECOBANK, SG-SSB, PHOENIX, UMB, ADB, PRUDENTIAL BANK, FIDELITY, CBG, CAL BANK, STANDARD CHARTERED BANK, ABSA and GEXIM.
“It is important to note that, the PFIs based on loan agreements signed between them and 1D1F companies, apply the interest subsidies allocated to them to cover part of the interest payment for loans granted to 1D1F companies, when interest payments are due.
Neither the Minister nor any representative of the Ministry is responsible for distributing interest subsidies directly to 1D1F companies,” the Ministry added.
The Trade Ministry stated that the information that PFIs have collectively granted loans amounting to GH¢2.96 billion to support 1D1F has been made available to Mr Emmanuel Kofi Buah.
Meanwhile, the Ministry has assured its commitment to provide the private sector operators with support for their projects in collaboration with the Participating Financial Institutions (PFIs).
This is “to sustain and increase the over 153,782 jobs created by the 1D1F companies across the country.”