JoyNews · 1h ago

BoG's 10% NPL Target: Finance expert warns 3 banks could collapse if govt fails to pay contractors

Banking consultant Dr Richmond Atuahene is urging the government to pay contractors owed for projects executed in 2021 and 2022, warning that delayed payments could worsen non-performing loans (NPLs) in Ghana's banking sector. His comments come as the Bank of Ghana tightens regulations, requiring financial institutions to reduce their NPL ratios to 10% or less by the end of December 2026. Dr Atuahene argues that some contractors relied on bank loans to execute government projects and that settling outstanding debts could help reduce bad loans. He warns that enforcing the new target within the remaining period could put pressure on banks with high NPL ratios. #BigAnalysis #BeyondTheNumbers