Banks urged to accept medical equipment as collateral

By Ernest Bako WUBONTO

Medical facility operators and equipment dealers are urging banks to accept medical equipment as collateral, given that banks typically demand collateral worth about 120 percent of the loan amount, amidst high-interest rates and exchange rate volatility.

John Chigbu, Chief Executive Officer (CEO) of Cassona Global Imaging, emphasized the importance of leading financial institutions recognizing the value of medical equipment as potential collateral.

The call comes as healthcare facilities struggle to access affordable financing for purchasing new advanced equipment or replacing/upgrading crucial medical machinery, hindering their ability to provide quality care to patients, he said.

Chigbu highlighted that investing in advanced medical equipment is crucial for improving patient outcomes and increasing efficiency in healthcare delivery. He urged financial institutions to acknowledge the significance of these devices and their potential resale value, especially given the high cost of medical equipment and the challenges faced by healthcare facilities in meeting loan repayment schedules.

Furthermore, Chigbu noted a lack of practical experience with medical equipment among medical and engineering students in top public universities. He emphasized the need for financial institutions to facilitate access to affordable loans for individuals and organizations in the health sector. Additionally, he called on the government to implement a duty-free policy for the importation of medical equipment.

As part of its corporate social responsibility initiatives, Cassona has provided top-tier equipment to some public universities for training purposes. However, Chigbu stressed the need for innovative funding solutions to ensure the availability of equipment in schools.

The president of the Private Health Facilities Association of Ghana, Dr. Samuel Kwame Buabeng-Frimpong, highlighted the global challenge of affordability of medical equipment, especially in sub-Saharan Africa. He emphasized the need for long-term credit facilities and accessibility to address these issues.

In his Independence Day message, Chigbu reaffirmed Cassona’s commitment to supporting Ghana and the African continent’s progress and prosperity, emphasizing determination and collaboration as key to overcoming obstacles and building a brighter future.

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