August 5, 2010

Parliamentary Select committee on Trade, Industry and Tourism says calls for a new formula to regulate the interest rate regime are in the right direction and would be considered.

The call was made last week by the Ghana National Chamber of Commerce and Industry (GNCCI) when its delegation with that of the Central Bank and other stakeholder groups, called on met the Select committee.
At the meeting, the Chamber made a case for a new formula regulated by law to be instituted to regulate the interest rate regime.

The Parliamentary Select Committee on Trade, Industry and Tourism has told CITI BUSINES Commercial Banks have agreed to carry out consultations within the next three months to alleviate concerns over the high lending rates.

The Chairman of the committee, Hon Amadu Sorogho said the process towards finding a more-effective solution to the lending rates controversy is underway.

‘‘We told bankers and industry that we will discuss with them. We asked Bank of Ghana and the ministries to call them and then start the processes. So we think that yes, it should be necessary for a formula such that when the Bank Of Ghana drops their pay slip as it has happened, there should also be a significant drop on the interest rates. On the other hand, if they think that now that there are other ways in which this thing could be done, then you do it- but like I said, it needs more concentration and we have been given the assurance that they are going to do that. It is only when there is extreme need that we will be forced to come in to see what we can do’’ he said.