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President Nana Addo Dankwa Akufo-Addo has appealed to banks in Ghana as a matter of urgency to reduce their lending rate in order for small businesses and other private institutions to easily access loans to create more jobs in the country.

In his keynote address during the commissioning of new head office of Ecobank Ghana, President Akufo-Addo mentioned that one key tenets of the ‘Ghana Beyond Aid’ project is to give freedom to private enterprises and to promote private sector growth to the Ghanaian economy.

Speaking to the gathering at Ecobank new Head Office, President Akufo Addo indicated that the monetary policy rate, the Treasury bill, inflation and the country’s deficit have fallen drastically except the banking lending rate to the private sector which remains stubbornly high.

“...we have eliminated 14 nuisance taxes in order to create a breathing space for the business community...the Minister of Finance has seen to it that we maintain fiscal discipline. A deficit of 9.3% which we inherited in 2017 has come down to 5.6%. The projection is that this year, we will go even further down to 4.5%”, the President stated.

President Akufo Addo added that the process of restoring fiscal discipline to the economy has gone down with Bank of Ghana maintaining tight-hole over the country’s monetary policy which has resulted in improving and making the macro-economy stronger.

“We have seen inflation declined from 15.6% in 2016 to 11.8% in 2017 and now at end of January at 10.3%. The monetary policy rate has also been falling from 25.5% in 2016 and now stands at 20%. The treasury bill rate has been fallen from 16.4% in 2016 to 13.4% but banking lending rate to the private sector has remained stubbornly high, averaging between 31.7% and 29.3% within the same period”, he mentioned.

He stressed that it is about time the banking lending rate gap is bridged to give substantial compliment in the vision of the country of free entrepreneurial and globally competitive economy.

The President reiterated that it is about the gap between the decline in inflation and the rate being charged by private banks bridged to give substantial compliment in the vision of making Ghana a free entrepreneurial and globally competitive economy.

“...my challenge to you is to compliment the efforts of my government which is creating a more stable macro-economic framework by bringing down lending rate...because the Ghanaian people are also in a hurry to see an improvement and quality of their lives.”

“....if we are willing to give impetus to private sector development in our country, lending rates have to come down and they need to come down as a matter of urgency....my challenge is, and I am speaking on behalf of Ghanaians who are not here is for you to look at reducing banking lending rates as quickly as possible.

The President has however assured that he will add his voice to improve banking culture of people paying back their loans if the banks response to his appeal of reducing banking lending rates in the country.