AfDB approves $20m trade credit for Ghana’s UT Bank
T
he African Development Bank (AfDB) has agreed to provide Ghana’s UT Bank a $20 million trade finance line of credit.
The Bank’s Board of Directors approved the credit May 22, 2013.
According to the AfDB, UT Bank is expected to use the 3.5-year facility to support trade finance activities of Small and Medium Enterprises (SMEs) and local corporates in Ghana.
“This facility will therefore foster financial sector development, enhance regional integration through intra-African trade, and contribute to government revenue generation,” said the AfDB.
It added that the project is expected to facilitate approximately $140 million of trade in essential raw materials, intermediate and finished goods, and equipment to support economic growth in Ghana.
The AfDB stated that the facility is its first trade finance intervention in Ghana since its participation in the Ghana Cocoa Board (COCOBOD) syndicated Commodity Finance Facility in 2009.
By Ekow Quandzie