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Improved Lending To the Private Sector Will Lead To Growth

3news.com | 8/24/2021

A Financial Expert with Dalex Finance Mr Joe Jackson has agreed with President Nana Addo Dankwa Akufo-Addo’s call for the Bank of Ghana to work to reduce lending rate.

Mr Akufo-Addo has urged the central bank to  work to bridge the gap between the monetary policy rate and the lending rates of commercial banks.

If this is done, the president said, it will enhance the rapid growth of the country.

“Interrogate the issue of high-interest rates in Ghana, and how the problem should be addressed to enhance the competitiveness of the private sector in the country…I believe the Bank of Ghana is best placed to lead this process of reflection and action.

“This is a gap we have to bridge if we are to realise the vision of a Ghana whose economy is globally competitive,” he said when he swore into office the newly constituted 13-member board of the Central Bank at the Jubilee House, Accra, on Friday.

Commenting on this in a tweet, Mr Jackson said “HE NADAA, I agree that Bank Lending rates seem high.

“Could it be that Govt borrowing is crowding out lending to the private sector?

“If riskless Govt bonds are as high as 17.7% then maybe even the 21% lending rate to the private sector is low.”

The board, chaired by the Governor of the BoG, Dr. Ernest Addison, includes Dr. Maxwell Opoku-Afari, First Deputy Governor, Miss Elsie Addo Awadzi, Second Deputy Governor, Charles Kofi Adu Boahen, Minister of State, Finance Ministry, and Prof. Eric Osei Asibey.

The others are Dr Kwame Owusu- Nyantekyi, Dr Samuel Nii-Noi Ashong, Mr Jude Kofi Bucknor, Mr Joseph Blignam Alhassan, Mr Andrew Adinorte Boye-Doe, Madam Angela Kyerematen-Jimoh, Mrs Comfort Ocran and Madam Regina Ohene- Darko Adutwum.

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