Treasury Bills cause of high interest rate – Addae-Mensah

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• Hovah 9 years ago

  ONE THE REASONS WHY GH IS NOT PROSPERING. HOW CAN U PAY BACK A LOAN THAT HAS 30% INTEREST RATE... ITS RIDICULOUS. WHY WILL I EVEN DO THAT WHEN I CAN GET IT FOR 2-5% IN THE WESTERN WORLD.. I FEEL SORRY FOR THOSE WHO HAVE TO GO ...
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  ONE THE REASONS WHY GH IS NOT PROSPERING. HOW CAN U PAY BACK A LOAN THAT HAS 30% INTEREST RATE... ITS RIDICULOUS. WHY WILL I EVEN DO THAT WHEN I CAN GET IT FOR 2-5% IN THE WESTERN WORLD.. I FEEL SORRY FOR THOSE WHO HAVE TO GO THROUGH THIS CATASTROPHIC ORDEAL.

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• Jonah 9 years ago

  You are talking from the point of view of people living in the western world and unless you can explain how Ghanaian residents can get loans at 2-5% that you alluded to, your write up isn't going to help the average Ghanaian ...
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  You are talking from the point of view of people living in the western world and unless you can explain how Ghanaian residents can get loans at 2-5% that you alluded to, your write up isn't going to help the average Ghanaian in any way.

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• kofi 9 years ago

  Masa, what our friend is saying is a valid point. We lack ideas. The government can reduce borrowing buy initiating policies that can bring in revenue. We don't pay property or council tax. That alone can bring in lots of rev ...
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  Masa, what our friend is saying is a valid point. We lack ideas. The government can reduce borrowing buy initiating policies that can bring in revenue. We don't pay property or council tax. That alone can bring in lots of revenue if we are prepared to educate and inform ourselves. Houses and non-farming lands are valued and put in a tax band. 10ghs here 20ghs there and we will have enough to lessen our dependency on treasury bills and shot term bonds. Let say we have 2m houses, office premises and building plots. With a median value tax of 50ghs a month. That is 100Mghs a month. For a year 1.2Bghs. Not much but a start. That alone can go into reducing our NHIS budget. In short we are being ruled by fools who are scared of losing political power because they know that, that is the only way to preserve their life style. So they take the easy option. Refinance debt and borrow to refinance again and again. Aba why!
  Some want to maintain the same status quo because in their little brain is working for them. If we create a large middle class my brother you will make more money.

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• TAVIE 9 years ago

  THE HIGH COST OF BORROWING IN GHANA IS THE MISMANAGEMENT OF GHANAIAN ECONOMY AS WELL AS THE LACK OF EXPORT OF FINISHED GOODS. CONTINIOUS BORROWING BY GOVERNMENT AND THE NATION LEAVING ON CREDIT IS A SERIOUS MATTER. SO LONG AS ...
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  THE HIGH COST OF BORROWING IN GHANA IS THE MISMANAGEMENT OF GHANAIAN ECONOMY AS WELL AS THE LACK OF EXPORT OF FINISHED GOODS. CONTINIOUS BORROWING BY GOVERNMENT AND THE NATION LEAVING ON CREDIT IS A SERIOUS MATTER. SO LONG AS INFLATION, COST OF GOVERNMENT DEBTS TO ATTRACT INVESTORS TO LEND THEIR MONEY IS THE ISSUE. AS A RESULT THE LENDING STILL REMAIN SO HIGH WHICH WILL PUSH THE LOCAL BANKS LENDING RATE SO HIGH. THE COUNTRY REQUIRES BETTER TAX SYSTEM FOR REVENUE GENERATION IF LESS REVENUE IS RECEIVED IT AFFECT EVERYONE. GHANA HAVE KNOWLEDGEABLE LEADERS YET GREED, SELFISH SLAVE MENTALITY, CORRUPTION IS THE PROBLEM.

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• GhanaMan 9 years ago

  ghanaian govt only cares about how to balance it's books for loans, not what opportunities the economy offers investors, business owners and startups.
  
  people will depend on govt for jobs for long until interest rates come ...
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  ghanaian govt only cares about how to balance it's books for loans, not what opportunities the economy offers investors, business owners and startups.
  
  people will depend on govt for jobs for long until interest rates come down to 5-10% .

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• Ohene 9 years ago

  Have about £5000 savings in your accounts in UK, you will get say £10 or even less every month as interest. If you are not lucky you will be charged income tax on that peanut. I think interest rate earnings on banks in Ghan ...
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  Have about £5000 savings in your accounts in UK, you will get say £10 or even less every month as interest. If you are not lucky you will be charged income tax on that peanut. I think interest rate earnings on banks in Ghana are better. I always like banking money in Ghana than I will do in the UK.

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• Hovah 9 years ago

  They just passed a law in Ghana to start charging taxes on ur interest aka (VAT) so all that u are talking about is cool but I'll still take Western system over the debacle going on in our financial system in Gh

  They just passed a law in Ghana to start charging taxes on ur interest aka (VAT) so all that u are talking about is cool but I'll still take Western system over the debacle going on in our financial system in Gh

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• kofi 9 years ago

  My brother you don't know what you are talking about. interest rate is higher in Ghana, but the instability of the currency makes investing in treasury bills very risky despite the high interest rate. let’s say you invest � ...
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  My brother you don't know what you are talking about. interest rate is higher in Ghana, but the instability of the currency makes investing in treasury bills very risky despite the high interest rate. let’s say you invest £5000 in treasury bills and the cedi depreciates over 25% in that period you are finished as you will end up with less pounds than you had in the first place after 1 yr. Also your narrow interest should not affect that of 25M people. It shows lack of understanding of fundamental economics. Inflation is very low in the UK. Not so in Ghana.

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• eugene 9 years ago

  i'm sure you can remember the Argentine boat seized in Tema couple years ago due to their bond failure.. Their neighbors in Venz. will be next!

  i'm sure you can remember the Argentine boat seized in Tema couple years ago due to their bond failure.. Their neighbors in Venz. will be next!

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• eugene 9 years ago

  i lie in USA and have small account in Ghana to draw faster interest...small account in USA right now at .50% is only making 3% a year,,even tho the bank can charge bad customers 22% on their credit cards

  i lie in USA and have small account in Ghana to draw faster interest...small account in USA right now at .50% is only making 3% a year,,even tho the bank can charge bad customers 22% on their credit cards

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• Loway 9 years ago

  If the interest rate goes down,the banks will lose because people will take their money elsewhere

  If the interest rate goes down,the banks will lose because people will take their money elsewhere

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• Nibian 9 years ago

  The banking industry in Ghana is like saying the earth is flat ..

  The banking industry in Ghana is like saying the earth is flat ..

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• kk 9 years ago

  People will start crying like what happened at DKM, TILAPIA SAGA, ONWARD INVESTMENT, and the rest. These kind of financial institutions will give higher interest rates and later disappear with customers investment. BEWARE OF ...
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  People will start crying like what happened at DKM, TILAPIA SAGA, ONWARD INVESTMENT, and the rest. These kind of financial institutions will give higher interest rates and later disappear with customers investment. BEWARE OF MENZBANK!!!!!!

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• Sam Bern 9 years ago

  You comment is not totally correct. You unless you lack understanding, you know that interest rate at which the BOG set for local banks to borrow is also based on foreign interest rate. If you have our rates two low, the will ...
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  You comment is not totally correct. You unless you lack understanding, you know that interest rate at which the BOG set for local banks to borrow is also based on foreign interest rate. If you have our rates two low, the will be capital moving out of our economy which will affect our foreign reserves and in the long run devalue our currency.
  The BOG set the interst rate to have a certain level of comfort for foreign capital to be keep here to shore up our currency to maintain the desired value. Desire value is another policy issue that is relative, and another topic all together

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• Ama Ghana 9 years ago

  When inflation rate is around 17%, you cannot lend money below that rate. And when you factor in other cost of capital, it is difficult to lend money at affordable rates, especially, when the rate of inflation is volitle. You ...
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  When inflation rate is around 17%, you cannot lend money below that rate. And when you factor in other cost of capital, it is difficult to lend money at affordable rates, especially, when the rate of inflation is volitle. You must also be mindful that rates that are imposed and unreasonably low will risk capital outflow. The government is just "playing chicken" Stop blaming the banks and put your act together.

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• eugene 9 years ago

  any world know bank like Standard Charter, South African bank can borrow in USA @1% then loan again in Ghana for anything above 5% and profit

  any world know bank like Standard Charter, South African bank can borrow in USA @1% then loan again in Ghana for anything above 5% and profit

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• Rague Attorney Jay Ray Ram Allan 9 years ago

  Good-for-nothing drop-out team of idoits is furious

  Good-for-nothing drop-out team of idoits is furious

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• kofi 9 years ago

  Stop hurling insults and let’s have your opinion. We have to learn to Jaw-jaw that to War-war. If you cannot make any valid or sensible point just go to bed. If the topic is above you brain level you can always google to un ...
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  Stop hurling insults and let’s have your opinion. We have to learn to Jaw-jaw that to War-war. If you cannot make any valid or sensible point just go to bed. If the topic is above you brain level you can always google to understand the terminology, interest rate, inflation, bonds and treasury bills. screaming and demonstration on the streets will not put food on the table but learning something from others can give you ideas as to how the economy should be run and what you can do as a political activist to ask good questions when you go to your meetings. Otherwise you will always be handed 50ghs to sit by the computer and spew nonsense. That will not pay school fees or rent.

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• patrick 9 years ago

  interest rate will continue to increase since government is not investing in productive sectors which will generate much returns.treasury bills is a bond which matures within a year and as such the monies are not used for lo ...
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  interest rate will continue to increase since government is not investing in productive sectors which will generate much returns.treasury bills is a bond which matures within a year and as such the monies are not used for long term investments/projects.Risk free investment should charge lower coupons.If interest rates for t'bill continue to increase,will deter people from producing to help the economy grow.

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• eugene 9 years ago

  even nigeria is lower at 14% but USA home loans are 3-4%

  even nigeria is lower at 14% but USA home loans are 3-4%

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