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Business News of Thursday, 28 May 2020


3% interest on stimulus package a ‘giveaway’ for members – GUTA

GUTA president, Dr Joseph Obeng play videoGUTA president, Dr Joseph Obeng

President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has described government's 3% interest on the GH¢600 million stimulus package to support Micro, Small and Medium Enterprises (MSMEs) as a free gift.

The interest rate on the package he said is feasible due to the one-year moratorium and a two-year repayment period for MSMEs.

Dr Obeng noted that this 'giveaway' from government was far better than that of some banks who have pegged their interest rate between 22-25%.

Comparing the banks' interest rate to government's 3%, he said “it's very feasible. If you look at the mainstream banks rates between 22-25% against 3% percent per annum that accumulates to about only about 9% for the whole 3-year period, it means that this is a giveaway money the government wants to assist his people.”

Based on this, he urged members who have applied for the loan to redeem their promises when the day of reckoning is due to gain government’s trust.

“We plead with our members that we repay this money so that government can also revolve this fund for us because we want this fund to be a revolving one but it cannot be done unless we have been able to redeem ourselves from this money given to us.”

Dr Obeng was of the view that government must think about establishing this stimulus package as a permanent fund for needy traders to tap into for business.

“We need a system like this permanently in place so that those who cannot afford the interest being given by the mainstream banks, the needy ones among us can go this fund,” he averred.