Minister of finance urges banks to reduce their interest rates

Banking

Wednesday, 30 December 2020 12:57

Minister of finance urges banks to reduce their interest rates

(Togo First) - Interest rates of banks operating in Togo are extremely high, in contrast with easing measures introduced this year to support consumers amid the pandemic.

This was revealed by the Minister of Economy and Finance, Sani Yaya, during the last session of the National Credit Council (CNC), which was held on December 24, 2020.

Yaya observed that “interest rates on loans are still at relatively high levels, despite the relaxations observed in 2020 compared to 2019,” and also because “the Central Bank (BCEAO) has lowered its key rate to 2%, effective since June 24, 2020.”

It should also be noted that, in order to reduce the pressure on financial institutions and mitigate the economic impact of Covid-19, the BCEAO proceeds to liquidity injections at a fixed rate of 2%.

For all these reasons, said the minister of finance, “it is difficult to understand why the cost of credit is high.” He then instructed the association of banking actors to conduct a study probing into the matter, asking them to find out the reasons for using such rates.

The CNC, let’s recall, is in charge of assessing the operating conditions of Togo’s banking and financial system, in concert with the BCEAO.

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REFORMS OVERVIEW

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At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

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Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

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Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

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