The Ghana Association of Savings and Loans Companies (GHASALC) has attributed the rise in non-performing loans in 2023 to the emigration of health workers and other public sector employees.

This exodus, combined with an unfavourable economic climate, has significantly increased loan repayment defaults.

Tweneboah Kodua Boakye, Executive Secretary of GHASALC, acknowledged during a media briefing that despite certain successes in the savings and loans sector in 2023, substantial challenges remain.

“The departure of public sector workers from the country has led to a rise in non-performing loans,” Mr. Boakye stated, underlining the impact of emigration on financial stability.

Kwame Owusu-Boateng, Board Chairman of GHASALC, highlighted the sector's growth, noting an increase in total assets compared to the previous year.

Despite the hurdles, the sector has shown resilience by growing its total assets,” Mr. Owusu-Boateng said, emphasising the sector's ability to navigate economic difficulties.

In a related development, Dr. Ernest Addison, Governor of the Bank of Ghana, expressed concern over the deviation of savings and loans companies from their primary mission.

Speaking through Osei Gyasi, Head of the Banking Supervision Department at the Central Bank, Dr. Addison urged financial institutions to continue supporting Micro, Small, and Medium Enterprises (MSMEs).

“It is crucial for financial institutions to continue supporting MSMEs to ensure sustainable economic growth, Mr. Gyasi conveyed on behalf of the governor.