Participants at the Bank of Ghana's sensitization program on banking services, consumer rights, and responsibilities in Sunyani have appealed to financial institutions to lower interest rates on loans to stimulate business activities in the country.
Expressing concern over the “excessively high” lending rates by banking and micro-finance institutions, participants highlighted the difficulty for entrepreneurs and young business owners to succeed in such a business environment.
The objective of the program was to enhance fiscal literacy among the public, particularly informal sector workers, to make informed financial decisions. Participants included artisans, traders, small and medium-scale enterprise owners, members of the garage association, and social clubs from Sunyani and its environs.
During an open forum, Madam Yaa Abrafi, a hardware dealer, emphasized that current interest rates were unaffordable for traders, questioning how businesses could thrive with loans carrying a 40 per cent interest rate. She noted that high-interest rates had led to the collapse of many businesses in the informal sector.
Madam Abrafi appealed to the Bank of Ghana, as the financial regulator, to review existing policies and laws to regulate interest rates in the public's interest, aiming to promote the growth of local businesses.
Reverend Kwasi Twum, Chief Manager of the Financial Stability Department at the Bank of Ghana, clarified that interest rates were not regulated by the central bank but were determined by market forces of demand and supply. He advised business operators to identify financial institutions offering favourable lending rates for easier loan repayment.
