VEEP decries high lending rates of banks

Accra, June 8, GNA - Vice president Alhaji Alui Mahama on Thursday tasked banks operating in Ghana to reduce their lending rates in line with declining prime rate of the Bank of Ghana. He said the high interest rates and low savings rates by the financial institutions were disincentives to access to credit and savings.

Alhaji Mahama made these remarks during an interaction with Mr Richard Meddings, Group Executive Director of the Standard Chartered Bank in charge of Africa, Middle East and the Americas at the Castle, Osu Accra.

He said at the moment, only 10 per cent of Ghanaians had savings account, while small and medium scale entrepreneurs could not access loans due to lack of collateral.

Vice President Alhaji Mahama said Ghana had launched a massive crusade to eradicate poverty with the focus on the private sector and expressed the hope that the banks would be supportive.

He lauded Standard Chartered Bank for being supportive of the development process of Ghana and asked Mr Meddings to be a goodwill ambassador of the country by wooing investors to improve the economy. Mr Meddlings, who is at the head of a two-member delegation on a visit to Ghana, said the Bank had in place lending facilities to facilitate the activities of small and medium-scale enterprises. He said the Bank had provided more than 5,000 dual desks to deprived schools in the country to motivate teaching and learning. Mr Meddlings commended the Ghana Government for her good economic management and for contributing towards the peace and stability of Liberia and Sierra Leone. 08 June 06