The Bank of Ghana (BoG) has extended its nationwide public sensitisation campaign on the Borrowers and Lenders Act, 2020 (Act 1052), to Kumasi in the Ashanti Region. This move aims to widen access to credit and bring greater clarity to secured transactions across the country. The campaign follows successful engagements in Accra with key industry bodies, including the Association of Ghana Industries (AGI) and the Ghana National Chamber of Commerce and Industry (GNCCI).
The Head of the Bank of Ghana’s Collateral Registry, Mr Alexander Koomson, stated that the initiative was prompted by feedback indicating a widespread lack of awareness among the public about the legal framework governing loans and collateral. He explained that many people were previously unaware of the provisions of Act 1052. However, continuous education has enabled business owners to ask relevant questions about how they can take advantage of the legal provisions.
Act 1052 clearly outlines the rights and responsibilities of borrowers and financial institutions, with the aim of promoting a fair and balanced lending environment. According to Mr Koomson, a secured transaction involves obtaining a loan using an asset as collateral. This allows lenders to have a clear understanding of the collateral used to secure loans, reducing the risk of default.
The sensitisation session in Kumasi brought together stakeholders from the Ashanti Region, including business owners, financial institutions, and industry experts. The session provided a platform for participants to ask questions and clarify their understanding of the Borrowers and Lenders Act. Mr Koomson emphasised the importance of education and awareness in promoting a healthy lending environment.
The Bank of Ghana’s Collateral Registry has been working to educate the public about the provisions of Act 1052. The registry provides a platform for lenders to register their collateral, giving them a clear understanding of the assets used to secure loans. This helps to reduce the risk of default and promotes a fair and balanced lending environment.
The nationwide public sensitisation campaign on the Borrowers and Lenders Act is part of the Bank of Ghana’s efforts to promote financial literacy and education. The campaign aims to educate the public about the legal framework governing loans and collateral, promoting a healthy lending environment. The campaign has been successful in Accra and Kumasi, with plans to extend it to other regions in the country.
The Borrowers and Lenders Act, 2020 (Act 1052), has been in effect since its passage in 2020. The Act aims to promote a fair and balanced lending environment by outlining the rights and responsibilities of borrowers and financial institutions. The Bank of Ghana’s efforts to educate the public about the provisions of the Act are expected to promote a healthy lending environment and increase access to credit.
Key points
- The Bank of Ghana has extended its public sensitisation campaign on the Borrowers and Lenders Act to Kumasi to educate the public about the legal framework governing loans and collateral.
- The campaign aims to widen access to credit and bring greater clarity to secured transactions across the country.
- Act 1052 outlines the rights and responsibilities of borrowers and financial institutions, promoting a fair and balanced lending environment.
