Foreign banks making it impossible for any businessman to succeed in Ghana — Gyakye Quayson

Assin North MP James Gyakye Quayson has accused foreign banks operating in Ghana of setting harsh financial conditions that make it virtually impossible for local businesses to thrive.

According to him, these banks impose tough terms, including high interest rates and rigid collateral demands, which continue to stifle indigenous businesses.

Speaking to the media, Mr. Quayson said while these same foreign banks offer interest rates as low as five percent in Western countries, they charge Ghanaian businesses rates as high as 30 percent.

“The biggest problem we have in Ghana, in the financial sector, as well as Africa in general, is because we are dealing with foreign banks,” he said. “These foreign banks come to our continent and establish their own terms and conditions. And the terms and conditions are so harsh that it’s almost impossible for any businessman to succeed.”

He added, “They care about what they’re going to get out of us. The problem we have is mainly about collateral. I mean, you’re starting a business — what do you have as collateral apart from maybe your land or estate? And they are not willing to compromise.”

“Look at the interest rate. With some of our banks, I hear 24%, 28%, 30%, while in the West, they are enjoying 5%. So they are collecting everything the business person should have been earning to grow the business,” he said.