Maravi

Govt calls on commercial banks to further reduce lending rates

COMMENT - A question the government should be asking the banks - what would it take for you to reduce lending rates to 5%? The answer should be interesting.

Govt calls on commercial banks to further reduce lending rates
By Fridah Zinyama
Wed 03 Feb. 2010, 04:00 CAT

GOVERNMENT has called on commercial banks in the country to further reduce their lending rates in order to make finances available to the productive sectors of the economy.

And Stanbic Bank managing director Joseph Chikolwa said the agriculture sector needs tailor-made products which are going to help to improve agriculture production in the country.

During the launch of Stanbic Bank’s agricultural banking yesterday, agriculture minister Peter Daka said interest rates had continued to be high in the country, a situation that had made it difficult for productive sectors like agriculture to grow.

“Investing in agriculture is very crucial as it will help farmers growing different types of crops to increase their production,” he said. “Most importantly, it will help the country meet its food requirements and have enough remain to export to neighbouring countries.”

Daka said the agriculture sector needs all the support that it can get from the banking community in order to grow.

“We are aware of the challenges that farmers are experiencing in accessing loans and we are happy that Stanbic Bank has come up with a product that will help to meet the needs of its clients,” he said.

He added that farmers had for a long time been crying for affordable long-term financing which would allow them to improve their production, makes profits and pay back the loans.

And Chikolwa hoped that the product which the bank had introduced ‘agriculture banking’ would help to meet government’s objective of diversifying the economy from mining to agriculture.

Meanwhile Standard Bank head of agriculture Jack Taylor said the bank had decided to introduce agriculture banking because Africa still had the potential to improve and meet the projected food shortage that the world was about to experience in the near future.

“Africa has the land and good weather to grow enough food for its own requirements and international markets as well,” he said. “Supply side growth is perceived to be insufficient hence the need to meet the projected food shortage in the near future.”

Labels: LENDING RATES, PETER DAKA, STANBIC

posted by MrK @ 7:06 PM