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Businessman, Kennedy Agyapong has called on commercial banks operating in the country to cut their interest rates to help boost economic activity and business.
According to him, these interest rates have made it almost impossible for local business owners to compete with foreign-based business owners.
Speaking in an interview with students from the School of Business at the Kwame Nkrumah University of Science and Technology (KNUST), the Assin Central lawmaker called the high interest rate regime of commercial banks a “very ridiculous”.
“Interest rates in Ghana are very ridiculous and make it virtually impossible for local businesses to compete favorably with foreign companies,” he pointed out.
He further indicated that most commercial banks also added their profit margins to the loans they extended to businesses – a move that led to further interest rate hikes.
“Many companies have complained about this and the high interest rates are one of the reasons why most Ghanaian companies prefer to import finished products, instead of producing them locally,” he added.
The Assin Central legislator, referring to the establishment of the Development Bank of Ghana, suggested that the non-custodial institution should deal directly with businesses instead of lending money to commercial banks to lend to businesses.
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