The Public Relations Officer of Ghana Union of Traders Association (GUTA), under the Trade Union Congress, Mr Joseph Padi has bemoaned the high interest rates charged by most banks in the country.
According to Mr Padi, the situation has reduces consumers’ patronage of buying spare parts from the local shops because of inability to afford the goods due to high cost price in the market.
He was speaking on Offinso based Time FM Morning show duped “Time Sunrise” hosted by Nana Akwasi Sarpong Kumankuma, on Tuesday, on the back of members of the Ghana Union of Traders Association (GUTA) locked up about 52 shops belonging to foreigners in Accra.
He stated that, the high interests rate and other unfavorable conditions by the country’s financial institutions, has driven away investors and decouraged businessmen from using loans to expand their business, unlike their foreign counterparts who have lower interest rates and the favourable conditions to operate their trade businesses.
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The PRO complained that businesses of their members are collapsing, causing young entrepreneurs end up losing their profits to banks and financial institutions with their high interest rates and other charges living room for foreign investors to take over the market.
Mr Joseph Padi therefore appealed to government to intervene and compel banks to reduce their interest rates to help grow small businesses.
” In some countries, they borrow at 5 percent and even in Nigeria, the worse you may find will be 15 percent. But we borrow at 25 or in some cases 30 percent per annum, compelling us to price our goods to raise enough to settle the loans. Even in some cases, we end up giving all out profits to the banks as interest. So we stay in the market all year round and do not make anything to improve our businesses” he bemoaned.