BoG engages businesses on conditions of supplier/trade credit in the wake of the Covid-19 pandemic

The Bank of Ghana (BoG) has engaged businesses on the situation of Supplier’s/Trade credit in the wake of the COVID-19 pandemic and attendant containment measures.

The participants, comprising leaders of businesses across Ghana’s economy, including Ghana Union of Traders Association (GUTA), Association of Ghana Industries (AGI) and Bulk Distribution Companies (BDCs) revealed that offshore suppliers are tightening credit conditions to domestic businesses in light of the global pandemic.

They lamented a pinch in supplier credit, adding that conditions were shifting towards a regime where there is the demand for full payment or higher percentage deposits before delivery of goods and that deferment of credit was not an option because of high costs.

The BoG noted the result of their interaction with businesses is expected to aid policy formulation and implementation.