President Akufo-Addo has admitted that high interest rates charged by banks remains a major stumbling block to economic growth in the country.
He says Ghanaian businesses can only become competitive in the sub-region and beyond if interest rates drop significantly.
The latest Annual Percentage Rate (APR) report from the Bank of Ghana indicates that banks charged as low as 14 percent and as high as 42 percent as final interest on loans given to households and enterprises from January to October this year.
Addressing the media at the meet the press encounter on Friday, President Akufo-Addo said he is confident the improved macroeconomic indicators will force interest rates down in the long-term.
“All of us know that the interest rate in our country has been prohibitive and it has been for years. They have been one of the major stumbling blocks to the growth of the Ghanaian economy” he said.
“The 38 percent figures that we inherited have now been brought down. We hope to get to 15.4 percent. It needs to come down even further, if really Ghanaian businesses are to be competitive” he explained.
Lending rate is the bank rate that usually meets the short- and medium-term financing needs of the private sector.
Over the years, various businesses have complained and called on government to reduce interest rates on loans as they end up troubling them more. Majority of them are unable to pay back the loans due to the high interest rate.
Although it has currently seen a slight reduction, businesses want it further reduced as they are positive that will be more beneficial to their businesses.