Interest rate, cost of borrowing to come down soon – John Kumah

Deputy Finance Minister John Kumah has assured that interest rates will come down in the next few months.

According to him, the government is putting up measures to ensure that the rates drop further than it has in recent times.

“At the moment T-Bill rate in January was at about 35%, today it is below 20%, and we are still forcing it down.”

“So that in the end once we tackle inflation and it also comes down, we are now going to see the cost of borrowing coming down within reasonable limits for businesses to have the liquidity to operate,” he was quoted by asaasenews.com.

He added, “So if you don’t have a solid macro-economic environment, businesses will suffer and we are working to restore a healthy macro-economic environment so that businesses will do well.”

The deputy minister of finance, John Kumah, had earlier stated that the coupon rate on Treasury bills would see a further decrease in the coming weeks due to the debt restructuring programme.

According to him, the Domestic Debt Exchange programme has accounted for the reduction in the rate of Treasury Bills from 35 to 24 percent.

The deputy finance minister argued the programme is yielding the results necessary for economic growth and transformation.

He said in Parliament: “Last week, the treasury bill rate in the country was at 35 percent. Today as we speak, the treasury bill rate has been reduced to 24 percent because of the DDEP. We had oversubscription and even at 24 percent, there is an oversubscription of 121 percent.”

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