World Bank help for rural financial services

The World Bank approved on Thursday a US $5.13-million loan to help Ghana strengthen financial services in rural areas. The bank said approximately 80 percent of Ghana's 18.5 million people lived in rural areas, and 60 percent of the population there earn their living. However, it added, financial services remained "significantly limited" and had continued to impede economic growth in the area. The Rural Financial Services Project aims to promote growth and reduce poverty by expanding and improving financial services. One of the four measures to do this, the bank said, would be to increase the capacity of the rural and community banks so that they could provide quality services. Credit for the project will come from the World Bank's soft-lending arm, the International Development Association. The loan is due for repayment in 40 years, after a grace period of 10 years. The Ghana government, beneficiaries and donors will contribute another US $17.66 million to the project.