Boycott bank loans – Ken Agyapong to GUTA

The Member of Parliament for Assin Central, Kennedy Ohene Agyapong has urged members of the Ghana Union Traders Association (GUTA) and Ghanaian traders in general to boycott bank loans over what he described as high-interest rates.

According to him, the high-interest rates are to the disadvantage of local traders compared to their foreign counterparts.

Mr. Agyapong, who was contributing to a statement on the floor of the House by Manhyia North MP, Collins Owusu Amankwa on the involvement of foreigners in Ghana’s retail trade and its implications, said the high rate is throwing local traders out of business and compounding their economic woes.

He said: “The reality is that it is very easy for a Nigerian to knock a Ghanaian out of business completely because our interest rates are so high and in India, China, Nigeria, their interest rates are low.

“Even today that interest rates are down, it is between 22 and 30 percent whereas our competitors are taking loans with interest rates as low as five percent, two percent. The banks are taking advantage of us, especially the traders. The situation they are in, they are forced to take any rate because they’re desperate."

“I’ll think if Ghanaian traders are able to boycott loans, they will sit up. I don’t take loans...If everybody will sit for about three months and we’re not taking loans, these banks will also sit up.”