Minority urges BoG to channel part of sterilized funds into VCTF

The Minority has called on the Bank of Ghana (BoG) to channel part of the 60 billion cedis it has sterilized into the Venture Capital Trust Fund (VCTF) to support young entrepreneurs and businesses.

The Ranking Member on the Economy Committee in Parliament, Kojo Oppong Nkrumah, said the Central Bank admitted to mopping up over 60 billion cedis from the economy since January this year as part of measures to reduce inflation.

He explained that the sterilization programme was meant to control excess liquidity by withdrawing money from circulation.

However, he noted that while this may slow down demand and price increases, it also locks up huge sums of money that could otherwise support economic growth.

According to him, channeling part of the funds into the VCTF would provide equity support for young people and businesses with viable ideas.

Unlike bank loans, he saidthe VCTF offers equity investment without interest, making it easier for entrepreneurs to access capital.

Mr. Oppong Nkrumah maintained that investing sterilized funds in the VCTF and even in the stock market would help expand businesses, create jobs, and support innovation.

He urged government to consider this alternative strategy rather than relying only on the traditional approach of mopping up money to fight inflation.

By: Jacob Aggrey