on high interest rate on Millennium Challenge loan

Donkorkrom (ER), June 20. GNA- Farmers in the Afram Plains have expressed concern about the 36 percent interest rate being charged by the Afram Rural Bank on loans dispersed to them on behalf of the Millennium Development Authority (MiDA).

They said they could not pay the high interest rate on the loan and made any meaningful profit to enhance their living standard and appealed to the Government to review the situation. The farmers expressed the concern when the Minister of Food and Agriculture, Mr Kwesi Ahwoi, held a meeting with them and other agricultural staff at Donkorkrom as part of his two-day official tour to the Kwahu North District.

The farmers said, while the Agricultural Development Bank (ADB) and other banks were charging between 22 and 26 percent interest on loans, the Afram Rural Bank interest was too high for them to pay. Mr Samuel Arku-Kelly, the Afram base zonal manager of MiDA, however said it was the Bank of Ghana who fixed that interest on the loans. He said MiDA had been organizing training workshop for the farmers to ensure effective use and management of the loan to enable them to pay back.

Mr Arku-Kelly said part of the funds would be used to construct infrastructure such as roads, classroom blocks, provision of electricity and potable water to enhance the living standard of the people. Mr Ahwoi advised the farmers not to politicize the loan issue and urged them to make judicious use of it to be able to increase food production to reduce the high importation of food stuffs, fish and livestock products into the country. 20 June 09