credit to both individuals and small and medium-size enterprise (SMEs) remains high. The year-end inflation for 2011 was 8.5% whilst average cost of credit remained at around 25%. OBJECTIVE 2: PROMOTE SOUND PUBLIC FINANCE MANAGEMENT The management of public finances has to be accountable, transparent and efficient in order to achieve the desired effect on both the economy and the public’s trust in the institutions of state. 3.3 Use of International Standards 3.3.1 Financial Reporting Framework Ghana has adopted the International Financial International Reporting Standards, in place of the Ghana National accounting Standards. All listed companies, government business enterprises, banks, insurance companies, security brokers, pension funds, and public utilities started the implementation of the IFRS in January 2007. Small and medium enterprises (SMEs), state owned organizations, and private organizations started using IFRS in 2010. 3.3.2 Basel Framework The Bank of Ghana has set up a committee tasked with advising the bank on the implementation of Basel II. The Bank of Ghana is poised to implement Basel II in 2012. The purpose of Basel II was to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against types of financial and operational risks banks face. It is commendable that the Bank of Ghana increased the capital resources requirements of all banks in Ghana ahead of the implementation of the Basel II Accords. Sixth Annual APRM Progress Report: January – December 2011 48