Chamber of Commerce and Industry worried about lending rates

Kumasi, June 24, GNA - The Ashanti Regional Branch of the Ghana Chamber of Commerce and Industry has complained about the high lending rates of the commercial banks. It described the rates as "exploitative" and said this was collapsing many businesses.

Members of the Chamber expressed these sentiments at a meeting with officials of the SG-SSB Bank in Kumasi.

The meeting was to brief them on some of the new products the bank has introduced to support the growth of small and medium scale enterprises. The Bank of Ghana (BOG) has pegged its lending rate at 14 per cent but the commercial banks charge rates between 28 per cent and 34 per cent. They said this was outrageous and completely unjustifiable and called for the urgent intervention of the State to bring about some sanity. Nana Owusu Ansah Sikatuo, a business consultant, and member of the Chamber, said instead of helping to create jobs and bring down poverty, the banks were rather, fuelling poverty.

They also complained about the cumbersome loan application processes and other conditions they found unrealistic.

Nana Sikatuo, who is also the chief of Morso in the Asante Akim South District, said there was the need for a review of the banking practice to enable more businesses access credit to expand and give employment to the youth.

He said with the influx of foreign banks into the country, the competition should have made it easier for businesses to access credit. He said, unfortunately, this has not been the case as the banks appear to have ganged up to feed on the vulnerability of local businesses.

Nana Sikatuo called on the Chamber to reposition itself to enable it to play leading roles in the business development of the country. Mr Ben Berko, Head of Business Banking of SG-SSB Bank, said the bank's "Boafo" business loan and business overdraft facilities are quick and offer easy way to small businesses to access unsecured short term credit. He said the bank would be opening additional branches in the Kumasi Metropolis to bring its services closer to the business community. Nana Yaw Owusu, Ashanti Regional Chairman of the Chamber, said the Chamber is establishing data of all members in good standing to explore the possibility of helping them to obtain loans from financial institutions. He called on members to be active and take keen interest in the activities of the Chamber to enable them to benefit from its programmes and activities.