A 3 percent interest rate has been imposed on stimulus package designed for businesses that have been hit by the COVID-19 pandemic.
Government initially intimated that the interest on the soft loans was going to be 5% but after a series of engagements and assessments of the situation, the directive was given by President Akufo-Addo for the interest to be reduced by 2%.
The loans under the COVID-19 stimulus package is being implemented by the National Board for Scale Industries (NBSSI) is part of government’s intervention to help revive the economy following the collapse of hundreds of businesses and the loss of employment as a result of businesses crippling.
Disclosing this at a press briefing in Accra, Thursday, head of the National Board for Scale Industries (NBSSI), Kosi Yankey-Ayeh government conducted extensive study on the sector before arriving at the decision.
She told the press, “The interest rate after deliberations with the President, Ministry of Finance and Ministry of Trade and Industry, after conducting a survey of about 1, 700 MSMEs in Ghana, initially we had suggested 5% but the President in consultation with the team decided to review the interest rates due to the plight of the Ghanaian MSMEs at the time such as this.”
According to Financial Analyst, Charles Mensa the reduction will be welcoming news to businesses since they will have to pay relatively lower interest than initially planned thus reducing the burden on them.
The NBSSI revealed that so far about 5000 businesses have applied for the stimulus package through the website, set up for this purpose.
Government has allocated some GHC600 million it hopes will contribute to the revival of the economy and get businesses back to their feet.
The stimulus package is open to all small and medium scale enterprises in all sectors.