A banking consultant, Nana Otuo Acheampong, says greed and lack of education among some Ghanaians who pursue unrealistic high interest rates are the cause of recent problems on the micro-finance front.
According to him, because some of the customers are bent on doubling their investments in the shortest possible time, they easily fall victims to some microfinance Institutions (MFIs) who deceive them with unsustainable interest rates on their deposits.
Recently, agitated customers of DKM Diamond Microfinance in Sunyani whose investments have matured stormed the premises of the microfinance company due to delays in the release of their monies.
They were asked to wait for three months, that is until the Bank of Ghana concludes an audit into the operations of the company, creating tension and dissatisfaction among the investors.
Similar incidents have been reported in Wa,Techiman, Nkoranza, Koforidua, Ho, Brekum, Bolgatanga, Kete Krachi and Dambai.
“Sometimes I don’t understand why some customers rush in for unsustainable rates of between 30 per cent and 55 per cent every two months” Mr Acheampong said.
Nana Otuo Acheampong stated that the Micro-finance institutions, the Bank of Ghana (BoG) and other stakeholders must take it upon themselves to educate Ghanaians about the dangers involved in those high unrealistic interest rates.
He observed that most of the high interest-rate-quoting companies are largely illegal financial institutions.
Meanwhile, Chief Executive Officer of First Liberty Microfinance Limited, Dr. Kusi Boachie Yiadom also blamed the situation lack of competence by some micro-finance companies.
Dr. Yiadom has therefore called on the central bank and other stakeholders to find a lasting solution to the problems since micro-finance institutions have come to stay.
By Abednego Asante Asiedu
