BoG Urged To Lower Lending Rates

Dr Kofi WampahThe Bank of Ghana has been urged to use its wide-ranging powers to lower bank lending rates to cushion the local business community against the consequences of the cedi’s tumble.

“A low lending rate is the key to our survival in this environment. With all the cedi issues and taxes suffocating local businesses, if the bank rates keep soaring, many would be forced to close their shops because patriotism will not be enough to save them,” Mr Roger Klogo, Chief Executive, Tanink Ghana Limited, opined.

In an interview with the Ghana News Agency in Tema, he called on the government to extensively consult the business community before implementing major fiscal and economic programmes.

“I would be very happy to see businessmen and business women given the platform to tell their stories borne out of practical experience, which are mostly gathered on the field. Finding the right mix of pragmatic and academic ideas would help us out of our economic problems,” he said

Mr. Klogo urged government to take stories and perceptions on corruption very seriously because that can drive away potential investors whose resources are needed to move the country’s economy forward.

Mr. Klogo called for the introduction of offshore banking in the country to help local businesses to access cheaper loans.

According to him, the argument that criminals would use such banking system to launder money is weak because there are rules involved in such enterprises.

Mr. Klogo explained that some big players in global finance and investment circles use such platforms to spread their earnings, which ultimately help local businesses.

He appealed to government to draw up and follow a petroleum adjustment timetable, so that businesses and the ordinary Ghanaian can plan their expenditure pattern.

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