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Commercial Banks Admit Cost Of Borrowing Is High
COMMERCIAL banks in the country have admitted that the cost of borrowing money is high and against the spirit of empowering citizens.
Last week, Finance and National Planning Minister, Alexander Chikwanda raised concerns about the high cost of borrowing money soon after he was sworn in.
Mr Chikwanda said the Government would press for pro-growth interest rates by dialoguing with the banking sector in understanding the factors that had led to the current prohibitive interest rates in order to streamline them and empower more Zambians.
He said that would grow the capacity of small-scale entrepreneurs, create more money and contribute to the sustainable development of the country.
In response, Bankers Association of Zambia (BAZ) chairperson, Mizinga Melu said in Lusaka yesterday that the minister was right and that the situation should be addressed urgently.
Ms Melu said the cost of borrowing money did not inspire citizens to participate in the economy.
She also said she was happy that the new Government had started dealing with critical issues such as the high cost of fuel.
Ms Melu said the commercial banks, through her association, were available to ensure that the thorny issue was addressed.
She said as soon as the minister settled in his office, the members of BAZ would hold a meeting with him and ensure that the interests of the Zambian people were addressed.
“We are in total agreement with the minister and this issue has been raised before but fundamentals need to be addressed.
“There is the issue of the high cost of doing business in the country which is also affecting commercial banks. We will support the new Government in ensuring that we address this matter,” Ms Melu said.
Mr Chikwanda said there was need to ensure that commercial interest rates in the Zambian banking and financial services sector responded to the movement of other macroeconomic variables like the current single-digit inflation.
Posted by
VIVA
October 3, 2011 at 11:25 am
Way to go Mr Minister. borrowing from a bank is a nightmare, collentral, what about us who are just starting up in life. i get paid 1m, gat nothing on me,wanna start a business n they say they need collentral, WTH.please do it now now
steve
October 3, 2011 at 11:58 am
help us pliz mr minister
GUEVARA
October 3, 2011 at 1:49 pm
AND KNOW THAT THIS WAS MOSTLY AGAINST BLCAK ZAMBIANS. USE AN ASIAN, WHITE OR EVEN COLOURED ZAMBIAN TABLES WOULD TILT IMPRESSIVELY SWIFTLY.
GOGOGOGO THE CHANGE WE WANT.YES WE CAN
Ray-Ray
October 3, 2011 at 3:01 pm
Hope the interest rates go down so we can have 20 year mortgages & revive the housing industry which in turn will revive the construction industry & provide employment. People in Lusaka & other urban areas struggle to get decent accomodation. In developed nations, people buy houses on mortgages & sell after a few years at a profit when the house gains value. They then buy a bigger house. After retirement, they have more than one property. In zed, we even stopped laughing when someone moves to stay in a compound.
Antonio
October 3, 2011 at 3:08 pm
Crazy things happening in Zambia,Mizinga Melu admitting that cost of borrowing is high through BAZ yet she will dispell that when she speaks as Stanchart MD
mwanya nshamyebe
October 3, 2011 at 3:41 pm
i agree with you antonio, just a book balance at stanchart is big that you run so fast and never return.
ndolesha
October 3, 2011 at 4:30 pm
colletral is a nightmir to stataz!
makina m
October 3, 2011 at 9:04 pm
its really a nightmare for us who are trying to settle in life with such high lending rates from these financial institutions when we get very small sums as our salaries whilst leading a normal lifestyle is expensive.worse still we dont even have any assets to empower us as proud zambians.please we ask u as our new minister in the new dawn government to do your level best and make us proud as zambians.
Mutimbankani
October 3, 2011 at 10:27 pm
Sata is by far the best