If you are looking for a loan and hoping the current high interest on loans will reduce any time soon, well think again.
According to the Managing Director of Societe Generale Ghana Gilbert Hie there is a very low possibility that interest rates on loans in the country will reduce any time soon.
According to Mr. Hie growing inflation and depreciation of the cedi among others will not allow for interest rates in the country to drop soon.
‘I don’t believe, unfortunately, that 2014 will be the year when interest rates will go down in Ghana. There is an increase in inflation, depreciation of the cedi and high remuneration on treasury bills.’
Inflation has been rising since late last year.
It hit a record 14 percent for February this year the highest in the past four years.
Meanwhile the cedi continues to struggle to stay afloat despite new and revised rules introduced by the Bank of Ghana to save it from further fall.
Speaking to Citi business News at the Annual General Meeting (AGM) of the bank Gilbert Hie says the economic indicators are not positive for now.
‘Am really sad for companies and individuals because the interest rate will still be high, so no one should dream of a reduction it will continue increasing to at least next year because current micro economic indicators will not change the issue.’
Ghana has one of the highest interest rates on loans in Africa.
Average Interest is hovering around 32 percent.
Meanwhile the year 2013 was a very good year for Societe Generale Ghana despite the difficulties the country went through.
The bank recorded a 31 percent profit after tax at the end of operations for the year.