Banks Urged To Reduce Interest Rate

The Minister for Business Development, Mr. Ibrahim Awal Mohammed has appealed to Financial Institutions to reduce their interest rate.

According to him, an interest rate below 18% is needed to help businesses succeed and promote economic growth in the country.

Speaking at the launch of a Partnership Agreement Signing between Lynch Capital and Corlido Group yesterday in Accra, he said “Whiles we have reduced interest rates from the 30’s to 40’s in two years to about 25%, we think you can still do better.”

Lynch Capital, a financial institution, having witnessed the frustration businesses go through in securing loans, has partnered with Danish Company, Corlido Group, to provide assistance to local businesses.
They have brought together a broad spectrum of supply chain service to improve finance, unlike the traditional supply chain management approach.

Mr. Awal Mohammed speaking at the launch, urged the Institutions to look beyond financing in the value chain system.

“I want you to do something for Ghana. Help give us interest rate that can make businesses succeed,” he said.
He also called for the need for financial institutions to support women in businesses.

According to him, a formidable portfolio should be given to women to make easier for them to access loans.
“Women constitute 52 percent of the Ghanaian population yet less than 40 percent have access to formal loans and that’s not good for an inclusive government that we want to create.

The women cook, they clean, make babies yet when they go to banks they are asked to bring collateral. Please let’s have an important set of formidable portfolio that will go to women,” he opined.

On his part, Mr. Fredrick Dodoo, the Chief Executive Officer of Lynch Capital, assured that he and his partners, Corlido Group, would help grow local businesses and assist in the transformation of the local economy.
“We expect to have offered the local supplier an option from the traditional from the traditional working capital funding means. Not only to support the working capital deficiency concerns but also to make the whole process convenient, fast and stress free,” he stressed.

Source: Thepublisher/Emmanuel Britwum