Today in history: Reduce lending rates for economic growth - Banks advised

In 2011, former Central Regional Minister, Ama Benyiwa Doe, advised banks to be considerate with the interest they put on loans they give to individuals or small and medium scale enterprises.

In her view, the country would experience economic development should they heed to her call on the reduction of lending rates by financial institutions.

Ama Benyiwa Doe proclaimed government’s effort of improving the conditions of the macro-economy to also see a boost in the financial sector.

She stated that the banking sector was booming as a result of low inflation rate, low Treasury Bill rate and low prime rate all at the time.

Read the story orginally published in 2011 by GNA below

The Central Regional Minister, Mrs. Ama Benyiwa Doe, has appealed to banks to reduce their lending rates and relax loan conditions for small and medium scale enterprises. She said this was important because the expansion of SMEs would not only create more employment avenues but would also contribute to the nation's economic development.

The Regional Minister said this in a speech read on her behalf at the launch of a new branch of the Housing and Finance Company Bank (HFC) at Tantri in Cape Coast. "Government is also working to improve the macro-economic conditions= in the country to make it possible for banks to thrive and also reduce the cos= t of 91loanable' funds in the country," she said. Mrs. Benyiwa Doe said banking was booming as a result of low inflation rate, low Treasury bill rate and low prime rate.

She called on banks to give more push to the government in order to realize the 93Better Ghana" agenda. Mrs. Benyiwa Doe also advised beneficiaries of loans to pay promptly t= o keep banks in business for more people to also have access and called on Ghanaians to cultivate the habit of savings and stop keeping monies at home= .. She said this will guarantee the security of their monies as well as enable the banks to mobilize enough resources for investment and lending to promote economic growth.

She said she was grateful to the HFC Bank for opening a branch in Cape Coast and appealed to the bank to fully harness its expertise in diverse financial services to facilitate the economic growth and development of not only Cape Coast but the whole of the Region.

The Managing Director of the HFC Bank, Mr. Asare Akuffo, said the aim of the Bank was to grow beyond its branch network and expand its reach closer to its existing customers and also reach out to new customers across the country.

He said the Bank appreciates the importance of education and would provide a dedicated financial service in Cape Coast since it is reputed to be the epicentre of education in Ghana with its several secondary and tertiary institutions. Nana Kobina Nketsiah V, Omanhene of Essikadu Traditional Area, who chaired the function pleaded with the Bank to ensure that its operations create wealth for the people and also enhance their livelihood and wellbeing.