2023-09-30 13:30:20
In an unprecedented move, the Guinean government has requisitioned the 19 banks approved by the Central Bank of the Republic of Guinea (BCRG) to participate in a fundraising program aimed at supporting the country’s economy. According to the directives given, banks will have to contribute up to 5,000 billion Guinean Francs (GNF), or approximately 580 million dollars, reports Financial Afrique.
The Guinean Minister of Economy and Finance, Moussa Cissé, accompanied by the Governor of the BCRG, announced this measure during a press conference held Friday September 29 in Conakry. According to them, this initiative aims to strengthen the financial resources of the State in order to face current economic challenges, in particular the drop in tax revenues due to the COVID-19 pandemic.
This requisition, although unusual, is not completely new. Indeed, other countries have already taken similar measures to mobilize funds for the benefit of the State in times of crisis. However, in Guinea, where the banking sector is relatively fragile, this decision raises questions regarding its feasibility and its impact on the establishments concerned.
Banks, now constrained by this government directive, will therefore have to find the means to fulfill this financial obligation. Some may have to mobilize additional resources by borrowing on the markets, which might lead to an increase in interest rates and limit access to credit for businesses and individuals.
On the part of citizens, this measure also raises concerns regarding the stability of the financial system and the possible impact on their deposits and banking transactions. The Guinean authorities wanted to be reassuring by affirming that all necessary measures will be taken to guarantee the stability of the banking sector and the security of deposits, indicates Financial Afrique.
It remains to be seen how this requisition of Guinean banks will unfold in the coming weeks. It comes at a crucial time for the country’s economy, which faces numerous challenges such as falling revenues, inflation and growing public debt. The success of this fundraising program will largely depend on the ability of banks to absorb this demand and maintain the confidence of economic players and the population.
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