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    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Value of MoMo transactions decrease by 3% between March and April 2022

    Inflation rate likely to drop to single digits in 2023 – Dr. Ernest Addison

    Monetary Policy Rate increased again by 200 basis points; now at 19%

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    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

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    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Standard of cars assembled in Ghana will not be compromised – GSA assures

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    Kyle Kelhofer appointed as IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone, and Togo

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    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Old Mutual celebrates 177th anniversary globally, 10 years in Ghana

    Gov’t expenditure needs to be checked to help deal with inflation – ICAG

    Take control of financing on the continent – Ofori-Atta to AfDB

    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Value of MoMo transactions decrease by 3% between March and April 2022

    Inflation rate likely to drop to single digits in 2023 – Dr. Ernest Addison

    Monetary Policy Rate increased again by 200 basis points; now at 19%

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    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Value of MoMo transactions decrease by 3% between March and April 2022

    Inflation rate likely to drop to single digits in 2023 – Dr. Ernest Addison

    Monetary Policy Rate increased again by 200 basis points; now at 19%

    Government partners private companies to mine abandoned iron ore in Oti Region

    Manufacture of petroleum products push PPI to 31.2% in April

    Nigeria begins processes to join Ghana-Côte d’Ivoire Cocoa Initiative

    Victor Yaw Asante, FBNBank Ghana MD

    Banks will continue to innovate to meet customers’ expectations – FBNBank’s MD

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    Government to invest heavily in internet safety – Ursula pledges

    Ho Node Hub rebrands as Node Eight

    Elon Musk strikes deal to buy Twitter for $44bn

    Block chain’s success will depend on supportive policy environment – Prof. Quaynor

    1.5% E-Levy rate will negatively impact GH¢6.9 billion target – Prof. Quartey

    Transactions to be affected by E-levy

    Bethniel Finance emerges winner in Innovation Challenge Program

    Taxing of non-resident e-commerce entities in Ghana could push prices up – Technology Consultant

    BoG cautions against fraudulent money-doubling scheme ‘BitCash Currency Exchange’

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    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

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    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Standard of cars assembled in Ghana will not be compromised – GSA assures

    GUTA urges gov’t to get other countries to open their borders to facilitate trade

    Kyle Kelhofer appointed as IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone, and Togo

    Greater, more diverse participation in global trade is key to achieving Africa’s economic transformation – World Bank

    Seth Terkper advises against e-levy; urges government to run to IMF

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Kenya:KCB stops three, six-month M-Pesa loans after rate cut

bycitibusinessnews
September 30, 2016
in News
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KCB has stopped offering three and six month loans on its mobile platform soon after it reduced the effective annual interest rate on the loans to 14 per cent.

The bank is now offering only the one-month loans on the KCB M-Pesa platform, for which it is charging a monthly interest rate of 1.17 per cent plus a one-off 2.25 per cent negotiation fee levied across all its loan products. This fee also attracts a 10 per cent excise duty.

“We no longer offer three or six month loans. We offer only one-month term loan. We are currently developing the capability to allow the customer to roll over (extend) and the bank will advise on the terms once the development is completed,” the corporate communications department at KCB told the Business Daily.

Borrowers previously had the option to pay back in one, three or six months, with the interest rate chargeable graduating downwards depending on the period.

The removal of the three- and six-month loan options came after KCB resumed lending on the platform Wednesday after a six-day hitch Kenya’s largest lender blamed on a surge in demand for loans.

Banks have been modifying the pricing of the mobile loan products to conform with the new interest rate regulations, thus bringing down the monthly interest chargeable on the loans.

Prior to the new law, KCB M-Pesa charged a monthly loan interest of six per cent for one month, five per cent for three months and four per cent for six.

Equity Bank has two options for its mobile loans, dubbed Eazzy, which is repaid within a month, and Eazzy-Plus, an instalment loan repaid over two to six months.

On the one month loan, Equity charges an appraisal fee of one per cent (that also attracts a 10 per cent excise duty), which is added to the interest that comes to no more than 1.17 per cent as per the legal limit.

The interest on the instalment loan on the Equity platform is levied on reducing balance.

Failure to settle the Equity loans on the due date results in the debt being rolled over as a fresh loan on the same terms as those of the original loan, meaning a customer is levied the fees afresh on the balance.

Commercial Bank of Africa (CBA), which offers the M-Shwari loan product, charges a flat 7.5 per cent fee on its mobile loan.

CBA has said the charge is not interest and therefore does not fall under those affected by the Banking Amendment Act 2016.

The private bank argues it is not necessary to review the fee since it is already lower than the 14 per cent legal cap.

–

Credit: Business Daily

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