A member of the presidential staff, Mr. Dennis Miracles Aboagye has emphasized that Vice President Dr. Mahamudu Bawumia’s proposed Individual Credit rating system will improve everyone’s quality of life in Ghana.
At the 57th Kwame Nkrumah University of Science and Technology congregation, Dr. Bawumia declared that Ghana will implement a credit scoring system the following year to enable citizens of Ghana to obtain personal loans and to assist financial institutions in managing the sharing of costs and risks with their clientele.
He believed that the credit system would guarantee debt repayment discipline.
“Ghana early next year will be introducing a credit scoring system for individuals. Every individual will have a credit score. Right now, our credit scoring system does not exist.
“So, everybody is seen as risky and the interest rates are high. But we are going to go into individualized credit scores. So, if you don’t pay your loan, you will have no credit score and you will have a problem when you go for a loan. But if you are diligent in paying your loans you get your high credit score and you are likely to get lower interest rates. This will bring more discipline,” he said.
Some analysts criticized Dr. Bawumia’s proposed strategy, citing concerns about its implementation’s viability, including Bright Simons, vice president of Imani Africa, and Kobby Mensah, professor at the University of Ghana.
Prof. Mensah questioned in a post published on X on November 28, 2023, why the Ghana Card isn’t being used to purchase cars because there are existing garages in Ghana.
“Are we not in Ghana? Are there no garages in Ghana? If the answers to these questions are yes, then the case is simple. Take your Ghana card to CFAO to pick up a Mercedes and let’s prove the theory,” his wrote.
However, Mr. Mircales Aboagye also stated on his X platform that a person’s credit score affects almost every aspect of their financial life, including applications for loans and mortgages and even something as basic as auto loans.
“Access to Cheaper credit and ease of access to these credit facilities. @thebankofghana, clearly indicates in their 2022 credit reporting Activity annual report, Paragraph 2.6, indicates that, they have just started discussions with the credit bureaus on the processes leading to the introduction of a credit scoring to complement the current credit reports provided by the credit bureaus.
“The Bank of Ghana goes on to indicate that, this is happening on the back of the introduction of the Ghana card which provides a unique identifier for credit information subjects. @MBawumia confirms the BOG Report that, from next year, this discussion will yield full fruiting and Ghana can also have a more universal and credible credit scoring system for all citizens.”
Source: Ghana360news.com
