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23.02.2005 General News

Don't increase basic rates - GNCCI

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The Ghana National Chamber of Commerce and Industry (GNCCI) has cautioned against any move by the banks to increase their base rates. This is to keep the macro-economic performance of the last four years on track.

It said any attempt to do so would not only slow down the growth of the private sector, since credit would be too expensive, but also hamper the performance of the economy.

The president of the chamber, Mr Solomon Quartey, who sounded the caution at the launch of the 4th Ghana banking awards, said that the private sector could not contribute its quota to the development of the country effectively, as it was being called upon to do, when it had to borrow at high interest rates.

The awards, which are organised by Corporate Initiative Ghana, in association with the GNCCI and the Association of Ghana Industries (AGI), are co-sponsored by KPMG.

The event is to assess the performance of the banks in the area of corporate banking in a particular year, to promote healthy competition in the sector, among others.

The Government has already warned of the possible effects of the new petroleum prices on the economy and asked all stakeholders not to abuse the system by taking advantage fo the situation to increase prices and the cost of providing services.

Mr Quartey said that the role of the banking sector in ensuring macro-economic stability was paramount and called for measures to help industries to grow in the country.