Gov't Writes Off 50% Interest On Loans

Government has written off 50 per cent of interest that has accrued on loans given to entrepreneurs under the Business Assistance Fund (BAF) to enable them to repay the loans. Out of ?11.6 billion interest that has accrued, the government has granted the businessmen and women a debt relief of ?5.8 billion. Trade and Industry Minister, Kofi Konadu Apraku told the Daily Graphic that the total amount of interest and principal due for payment as at June 2001 was ?21.6 billion.

Out of the amount, only ?4.7 billion representing 22.5 per cent has been paid, with ?16.9 billion still being outstanding. The total amount of money disbursed under the BAF was ?10 billion with an interest of 15 to 20 per cent. Dr Apraku explained that the decision to provide the debt relief is part of the ministry's efforts to encourage the debtors to repay the loans and at the same time help them to stay in business.

He said the ministry is being magnanimous with the debtors and expressed the hope that they will respond positively by repaying loans promptly. The Ministry has also engaged a debt collecting institution to ensure maximum recovery of loans. Dr Apraku however warned that if all efforts to persuade the debtors fail, the Ministry will submit the names of defaulters to the Attorney General's Department for prosecution.