Instituted by the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), the Guaranteed Agricultural Credit Award Scheme is to recognize the contribution of financial institutions' lending to the agricultural sector.
Mr Kwesi Korboe, Chief Executive Officer of GIRSAL who presented the award to the Bank in Accra, said the Bank Rating Scheme was introduced to award Banks for their continuous business engagement and support for increased lending to the growth of the agricultural sector in Ghana.
“Financial Institutions are awarded based on the quality and value of GIRSAL guaranteed agribusiness loans they issue within the year and from our data, ADB emerged as the Bank with the highest value” he said.
Receiving the award, the ADB Managing Director, Alhaji Alhassan Yakubu-Tali, stated that the award was a recognition of the Bank's promise of harnessing the transformational power of agribusiness for wealth creation.
According to him, the Bank's commitment was evident in the increase of the Bank's loan stock from GH¢453.20million in December 2016 to GH¢993.50 million by end of third-quarter 2022.
“ADB remains a leading lender to the agricultural sector in the country and we will deepen our collaborations with stakeholders within the sector to make agribusiness much more attractive,” he added.
Alhaji Yakubu-Tali said the collaboration with GIRSAL was aimed at de-risking agricultural financing by issuing credit guarantees to stakeholders in the agribusiness value chain.
“Issuing out the Guaranteed Agricultural Credit reduces ADB's losses and increases the Banks risk appetite for lending to agribusinesses at competitive interest rates per annum,” he added.
He thanked GIRSAL for the award and assured stakeholders that the recognition would spur the Bank to commit more to the growth of the agricultural sector.