President of the Ghana Association of Banks, John Awuah, says banks are working with the Ministry of Foreign Affairs to address loan defaults by doctors who move abroad. He revealed that some medical professionals take personal loans before leaving Ghana and fail to repay them.
A letter has already been sent to the Foreign Affairs Ministry to help contact the diplomatic corps about the issue. Mr. Awuah said the situation is worrying because it raises the number of non-performing loans in the banking system. He noted that many of these doctors borrow large sums, such as GH¢120,000, and then leave the country. About 70% of those who have travelled are not paying back their loans.
Banks have discussed requiring visa applicants to get clearance from their banks before approval. Mr. Awuah hopes new mechanisms will ensure that borrowers abroad honour their financial obligations in Ghana.
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