An official of the Export and Import Bank of the United States of America (Ex-Im Bank) has denied reports that it withdrew cover for letter of credit (L/C) and other business for Ghana around six years ago, only to reinstate normal cover for both public and private sector companies at a later date.

The bank's International Business Development Officer, Ricardo Michel, told The Business Chronicle that at no time did Ex-Im Bank 'blacklist' Ghana, but he conceded that there had been a reduction in the amount of business it wrote for the west African country.

Low awareness

Michel suggested inadequate information and education about Ex-Im Bank was one reason for low transaction volumes between the bank and Ghana.

The bank official was responding during a visit to promote business between Ex-Im Bank and Ghana to media reports that the country had been blacklisted around six years ago and had subsequently been reinstated.

L/C example

The report in The Business Chronicle highlights the type of business Ex-Im Bank may write for L/C transactions between US exporters and Ghanaian buyers.

It says that through the use of an Ex-Im Bank L/C policy, UMB Bank of Saint Louis, Missouri was able to confirm a L/C from Ghana's Cal Merchant Bank. This transaction, approved in July 2006, will support the sale of starch products valued at $40,000 to Morgate Industries in Kumasi by Faultless Starch/Bon Ami Company of Kansas City, Missouri.

Economic development

Michel said that on his visit to Ghana he had already been in contact with key players in Ghana's textiles and garments, telecoms, manufacturing, agricultural and financial sectors.

The bank official pointed out that significant opportunities are open to Ghanaian importers of US-made machinery under the African Growth and Opportunity Act. Under this legislation the Ghana-based machinery buyer would be expected to produce goods to export into the US market, which Michel says should lead to job creation and revenue for Ghana.

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