[ 2011-04-12 ]

Trade Minister Hannah Tetteh

Exporters cry over high cost of borrowing
Exporters have complained about the cost of
borrowing as one of the major challenges affecting
their business.

It was one of the several issues they raised this
morning at a national forum organised to discuss
issues relating to the Export Development and
Investment Fund, EDIF.

Some of them spoke to Joy Business stressed the
need fro financial institutions to look at the
time within which credit is delivered to
businesses.

Others said the unwillingness of insurance
companies to insure the products was a major
problem.

The forum was on the theme, EDIF, a reliable
partner for the promotion and development of
Ghana’s export trade.

Trade Minister Hannah Tetteh advised banks to do
proper due diligence before lending to avoid
unnecessary risks.

She said although EDIF lent money to businesses
through the banks, whenever customers default,
EDIF bears the brunt fully meanwhile the banks are
in a better stead to assess the viability of the
businesses of borrowers than EDIF does.

She said there ought to be a system that put some
reasonability on the bank such if a business fails
to pay back a loan, the bank should be held
responsible.

That way, the banks may be careful and this will
reduce rate of bad loans and improve recovery rate
of the funds lent by EDIF.

Source - MyjoyOnline

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