Lower interest rates will promote private sector development – Alhassan Andani

A former president of the Ghana Association of Banks, Naa Alhassan Andani, has said the recent decline in government treasury rate was a positive development as it would subsequently lead to a decline in interest rates as well.

He said the subsequent decline in interest rates, should it happen would help support the expansion of the private sector which would ultimately help grow the economy.

Government’s 91-day treasury bill has seen a significant decline from around 35 per cent to 19.38 per cent post the domestic debt exchange programme (DDEP).

This has led many to expect that this downward trend would reflect in the rate at which businesses and individuals borrow from the banks as well.

Speaking in an interview with the media on the sidelines of a business forum in Accra, Naa Andani, who is the immediate past Managing Director of Stanbic Bank Ghana, said lower interest rates was necessary to allow businesses access to capital to support their expansion.

“For me, the treasury bill rate coming down is just a natural thing and this is welcoming. The 35 per cent was a problem and I think the downward trend is very good “, he stated.

Expert advice
The business forum which was targeted at people living in Zongo and inner communities was on the theme “Avenues to maneuver during economic downturns’.

In his keynote address, Naa Andani urged community leaders to seek for expert advice when entering into partnership deals.

According to him, some community leaders usually go into these partnership programs with little or no in-depth knowledge on the issues.

“If it is agriculture of any kind, please bring in the expert of the area to advise you before you go into partnership … so that you can think of today and tomorrow and make sure the benefit accrues to both private and public partnership in a manner that is meaningful.”

This, he said would make the deals more effective to benefit the people in the communities.