Borrowing costs cut by more than half under Mahama-Finance Minister

Finance Minister Dr Cassiel Ato Forson says the government has more than halved the cost of borrowing since President John Dramani Mahama assumed office.

According to him, the cost of capital, which previously averaged around 30 per cent, has now declined to between 9 and 13 per cent.

“Since President Mahama took office, we have deliberately brought down the cost of capital. Today, businesses can borrow at between 9 and 13 per cent,” Dr Forson said.

He, however, stressed that the government’s ultimate objective is to reduce borrowing costs to single digits to enable businesses to access affordable financing, expand their operations and create more jobs.

The Finance Minister also raised concerns about the limited flow of credit to the private sector.

“Our banks are not lending enough to the private sector, and that should not be the case,” he said.

Dr Forson said the government was committed to making credit cheaper and more accessible to market traders and business owners across the country.

He added that affordable financing would enable businesses to grow, expand economic activity and create more employment opportunities for young people.

By Esther Padmore Amonoo