GUTA appeals to banks to relax measures on borrowers as coronavirus slows capital

The Ghana Union of Traders Association (GUTA) is appealing with banks to find a way of alleviating the plight of those who may have borrowed money from them following the spread of the novel Coronavirus from China that has interrupted global trade.

This is according to a statement issued by GUTA and sighted by GhanaWeb on March 4 indicating that majority of its small-scale business owners cannot turn over their capital at the moment emanating from delay in manufacturing in China.

GUTA, however, adds that due to rapid causalities from the outbreak of the virus, many of its members are unable to physically visit the Asian country to purchase their goods and services.

The statement further noted that; “While the large and medium scale importers buy directly from the manufacturers and can still transact with their foreign suppliers without necessarily travelling to China, the small-scale businesses that buy from the open markets and shops in China have no other alternative than to travel there physically. So, they are affected even more.”

The traders association lamented that with the extension of the Chinese holiday and restriction on movement to and from the affected areas, the turnaround of their funds will be difficult until the situation is brought under complete control.

“This will adversely affect prices of goods and services due to high demand and supply that may arise,” the statement added.

GUTA warns that turning to other business destinations like Dubai, Turkey and other manufacturing countries will not solve the problem since China is the designated manufacturing hub of the world.