The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has assured businesses affected by the recent floods that commercial banks are ready to provide financial relief by restructuring existing loan facilities.
The assurance comes as businesses across several parts of Accra continue to count the cost of the floods, which damaged properties, disrupted operations and forced many firms to suspend activities temporarily.
Mr. Awuah said the banking industry recognises the financial difficulties confronting affected businesses and is prepared to engage customers on flexible repayment arrangements to help them recover.
According to him, banks successfully adopted similar measures during the COVID-19 pandemic by renegotiating repayment terms for businesses facing financial distress, and the industry is prepared to extend the same support following the recent flooding.
“The commercial banks did it during the COVID-19 time and we will do it again this time round,” he said.
Mr. Awuah noted that while the priority is to help businesses regain stability, the floods will also have implications for the banking sector as some borrowers may find it difficult to service their loans.
He explained that the disruption to business operations is likely to affect the quality of banks’ loan portfolios and the overall performance of credit facilities.
Despite the expected impact, he expressed confidence that Ghana’s banking sector remains resilient and well-positioned to absorb the shocks while continuing to support customers through the recovery period.
“For the banks, we have been impacted badly, and that will be reflected when it comes to our loan book and the performance of our credits, but we will survive,” he said.
The comments come amid growing calls for financial institutions and other stakeholders to provide targeted support to businesses affected by the floods, with many enterprises facing significant repair costs, inventory losses and interruptions to normal operations.
Loan restructuring allows borrowers to renegotiate repayment schedules or other loan terms, helping businesses manage temporary cash flow challenges while avoiding loan defaults.
Industry observers say such interventions could play an important role in helping affected businesses resume operations, protect jobs and support broader economic recovery following the floods.
