Exim Bank Bill generates lively debate in Parliament
The second reading of the Ghana Export Import Bank (EXIM) Bill, 2015 generated a lively debate in Parliament Wednesday, with most members kicking against plans to make the proposed bank independent of the Bank of Ghana (BoG).
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The MPs for Tamale South, Manhyia South, Tema East and Wenchi, Mr Haruna Iddrisu, Dr Matthew Opoku-Prempeh, Mr Daniel Nii Kwartei Titus-Glover and Prof George Gyan-Baffuor, respectively, among many others, argued that according to the country's laws, all banks were subject to the regulations of the BoG.
They wondered why the bill proposed that the EXIM Bank, if established, could not and should not be regulated by the BoG but rather the Minister of Finance.
They contended that empowering the minister to superintendent over the bank was tantamount to creating an institution parallel to the BoG which might cause some conflict.
Counter arguments
But the MPs for Old Tafo and Bawku Central, Dr Anthony Akoto Osei and Mr Mahama Ayariga, respectively, countered those arguments, saying the EXIM Bank was a special kind of bank and different from the traditional banks in the country, for which reason if the laws establishing it were different it would not be out of place.
Dr Osei, who made reference to the United States, Chinese, Indian and other EXIM banks, said none of them was regulated by the central banks of the countries within which they were established.
He said EXIM banks were different from other banks and that they were established with the sole purpose of ensuring an increase in a country's exports.
That distinction, he argued, needed to be made clear, adding that "maybe Parliament should be the body to regulate it".
Background
Ghana’s export sector has evolved significantly over recent decades.
In line with the nation's economic and industrialisation process, exports have gradually included non- traditional products to the largely indigenous export products.
Although there is an impressive development in the export sector, the perceived idea of transforming Ghana's economy into an export-led one has made it necessary to adopt a policy to drive this laudable idea.
In that regard, the government, in the 2015 budget statement, announced its intention to establish an EXIM Bank to lead in the strategic positioning of Ghana as an export-led economy.
The proposed bank is envisaged to promote the acceleration of Ghana's drive towards achieving a more diversified economy to make it resilient to external shocks, alongside an improved capacity to produce goods and services in the competitive global marketplace.
Purpose of the bill
The bill, therefore, seeks to establish an EXIM Bank which is a quasi-governmental institution that will act as an intermediary between national governments and exporters to issue export financing.
The bank, which is envisaged to be a non-deposit-taking institution, will assist exporters to compete internationally by providing insurance and finance facilities to support their overseas activities.
