Employers to engage Central Bank, Government on Interest rate
The Ghana Employers Association, (GEA) says it will engage the government and the Bank of Ghana to find ways of bringing down interest rates.
The move follows complaints by industry players on the cost of borrowing and the excessive levels of taxes on businesses.
Calls for the reduction of interests rates charges by commercial banks from government and industry captains have gone unheeded despite improved macroeconomic indicators, such as the monetary policy rate of the Bank of Ghana, the easing of inflation and the drop in treasury bill rates.
A statement released by the Chief Executive Officer of the GAE, Mr. Alex Frimpong, said the Association will work in concert with stakeholders like the Ministry of Finance and Economic Planning, the Bank of Ghana and other business associations to dialogue with the banks towards “a more meaningful and enduring interest rate regime”.
“For every business to grow and expand, it requires adequate capital which needs to be both accessible and affordable. The current interbank average base rate for borrowing of 26% per annum is unsustainable especially for small and medium-sized enterprises”, the release added.
“The GEA expects that with the current relative macroeconomic stability and the downward trend of inflation and the Bank of Ghana policy lending rate of 13.5 per cent, the situation would have improved. This does not appear to help business growth.”