High cost of borrowing worries ZACCI
High cost of borrowing worries ZACCIBy Fridah Zinyama
Friday September 26, 2008 [04:00]
ZAMBIA Association of Chambers of Commerce and Industry (ZACCI) has stated that it is concerned with the high cost of borrowing money from Commercial banks. ZACCI notes that the high cost of borrowing money subsequently translates into rising costs of goods and services.
“The situation arises where the companies will either compromise on their quality to maintain low prices or pass on the increased costs to the consumers,” ZACCI stated. Most commercial banks have increased their base rates, citing the rise in the country’s inflation rate as being behind the upsurge in the cost of money.
The Association however, observed that the high interest rates were most likely to last for a short while as the country was currently experiencing high food and fuel prices.
“To add to the problem is the current political situation in the country,” ZACCI noted. “When a country is about to go through an election process, investor confidence reduces as the investors do not know who will be running the country and what policies that particular government will pursue.”
ZACCI however noted the current doubts in the economy would cease as soon as the future of the country becomes certain.
Labels: INTEREST RATES, ZACCI
posted by MrK @ 5:33 PM
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