Some Financial Analysts have lauded moves by the Central Bank to deduct money from commercial banks whose accounts were used to assess loans from the EXIM Bank.
The decision follows Exim Bank’s inability to recover credit facilities channeled through them to the commercial banks for on-lending to customers.
But Citi Business News understands most of the customers who took the loans cannot be traced by the respective banks.
As a result, the situation has created a huge challenge as it is making it very difficult for the banks to pay back money to Eximbank.
In an interview with Citi Business News, Financial analyst and CEO of SAMBED financial consult, Sam Bediako Asante said the move by the BoG is commendable as it will sanitize the banking space.
“Those loans that are accrued to EximBank are not for free therefore it is standing on the books as credit to some people and therefore if they want their money back, they have to hold those guarantors who are the commercial banks in this case. So the central bank has the right to hold those commercial banks who stood as guarantors for those who came for the loan to pay back to them,” he stated.Meanwhile efforts to get a reaction from EximBank over the latest development has so far been unsuccessful.