[ 2015-11-10 ]

Banking consultant blames micro-finance problems on greed, lack of education
A banking consultant, Nana Otuo Acheampong, says
greed and lack of education among some Ghanaians
who pursue unrealistic high interest rates are the
cause of recent problems on the micro-finance
front.

According to him, because some of the customers
are bent on doubling their investments in the
shortest possible time, they easily fall victims
to some microfinance Institutions (MFIs) who
deceive them with unsustainable interest rates on
their deposits.

Recently, agitated customers of DKM Diamond
Microfinance in Sunyani whose investments have
matured stormed the premises of the microfinance
company due to delays in the release of their
monies.

They were asked to wait for three months, that is
until the Bank of Ghana concludes an audit into
the operations of the company, creating tension
and dissatisfaction among the investors.

Similar incidents have been reported in
Wa,Techiman, Nkoranza, Koforidua, Ho, Brekum,
Bolgatanga, Kete Krachi and Dambai.

Speaking Monday on Adom FM’s “Burning
Issues” programme with Afia Pokua, Nana Otuo
Acheampong said investors need to be vigilant.

“Sometimes I don’t understand why some
customers rush in for unsustainable rates of
between 30 per cent and 55 per cent every two
months” Mr Acheampong said.

Nana Otuo Acheampong stated that the Micro-finance
institutions, the Bank of Ghana (BoG) and other
stakeholders must take it upon themselves to
educate Ghanaians about the dangers involved in
those high unrealistic interest rates.

He observed that most of the high
interest-rate-quoting companies are largely
illegal financial institutions.

Meanwhile, Chief Executive Officer of First
Liberty Microfinance Limited, Dr. Kusi Boachie
Yiadom also blamed the situation lack of
competence by some micro-finance companies.

Dr. Yiadom has therefore called on the central
bank and other stakeholders to find a lasting
solution to the problems since micro-finance
institutions have come to stay

Source - Adom News

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