The Minister of Finance and Economic Planning, Dr. Kwabena Duffuor, has expressed dissatisfaction with commercial banks in the country for charging high interest rates, calling on them to stop the practice.
�We are not happy with the banks and have asked them to cut their interest rates immediately,� he said. The practice, which is affecting productivity of the private sector, was condemned by Members of Parliament (MPs) when the Minister appeared before the House to answer questions on the Ghanaian economy.
The minister revealed that his outfit, in collaboration with the Governor of the Bank of Ghana (BoG), had met with mangers of commercial banks and directed them to reduce their interest rates. �We expect the banks to take a cue from the favorable developments and adjust according,� he disclosed.
James Klutse Avedzi asked the minister about what could be done to the banks if they failed to heed to the call. Answering the question, the Minister said, �We will put in place measures to make them to comply.�
The Minister told the House that there has been a steep decline of interest rates on the auction market from December to date, indicating that the economy was entering into a cycle of declining interest rates.
To this extent, he called on private sector operators to borrow at relatively low rates to improve their operations to create jobs. Nevertheless, Hackman Owusu-Agyemang, MP for New Juaben North stated that �interest rates were not falling because some commercial banks were charging rates as high as 32 percent.�
He claimed that the development had lead to the collapse of a number of companies in the poultry and textile industries and appealed to government to address the situation. The Minister of Food and Agriculture, Kwesi Ahwoi, also took his turn to answer questions on food production for this year.
He noted that it is expected that 150,000 hectors of land would be cultivated, stressing that government would establish farm blocks and agri-businesses, which are estimated to offer employment to about 450,000 youth.
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