Indigenous liquor giant, Kasapreko Company Limited (KCL) has lamented the move by the central bank to increase its policy rate to 21%.
The liquor giant fears the move will lead to a significant hike in the interest rates of banks.
The Bank of Ghana increased the policy rate to 21 percent from 19 percent on Wednesday, 12th November,2014 in a bid to control inflation which stood at 16.9% for October 2014.
Interest rates are currently hovering between 35-40 percent while that of micro-finance institutions are between 60 and 100 percent.
According to the business community, the high cost of borrowing is unattractive and crippling small and medium scale businesses.
Banking Consultant Nana Otuo Acheampong has already expressed worry the move will translate into high cost of borrowing for individuals and businesses.
The Minister of Trade and Industry Dr Ekow Spio -Garbrah has begun a campaign to push interest rates charged by banks in the country down.
Speaking to Citi Business News, the Managing Director of Kasapreko Dr. Kwebena Ajei said the situation is not encouraging investments in the manufacturing sector.
“Bank rate , borrowing rate is very expensive. The cost of money in Ghana is very outrageous. It is not encouraging and it is difficult to work in such an environment but we don’t have an option”, he stressed.
He spoke to Citi Business News at a soiree to partner event organizers to deliver first class cocktail experience with premium local brands from kasapreko.
By: Rabiu Alhassan/citifmonline.com/Ghana
