The Gambia Central Bank has called on banks to fund some of the government’s development projects amid revenue decline due to the coronavirus pandemic.

The bank’s governor Buah Saidy said this request was due to “severe contraction of D2.1 billion in government revenue” due to the pandemic. The bank has already released about D700 million to the banks. 

“Government has certain programmes and projects that will require support and collaboration from the financial sector (banks) in particular to finance those development projects, given the fact the CBG has intervened to decrease the reserve requirement of commercial banks and make the sum available to them,” Mr Saidy said on Thursday at the bank’s quarterly Monetary Policy Committee press briefing in Banjul.

He added: “This is a lot of money that could finance the needed adjustments at the ports, and other government activities that need financing especially in terms of digitalising the Gambian economy. 

“We all know because of the pandemic revenue and grants took a hit as imports declined and donor support reduced significantly since most of our donor partners are also confronted with the effects of the pandemic. 

“As a result, the government has no choice but to reduce recurrent expenditure and increase spending on health and social support to the Gambian citizens.”