Bunge news: Policy to control interest rates in financial institutions underway

The legislator said despite President John Magufuli’s plea to financial institution to reduce the interest rate on lending two months ago, financial...

Bunge news: Policy to control interest rates in financial institutions underway

The legislator said despite President John Magufuli’s plea to financial institution to reduce the interest rate on lending two months ago, financial...

31 May 2018 Thursday 18:21
Bunge news: Policy to control interest rates in financial institutions underway

By Emmanuel Onyango

Plans are underway to establish a national financial policy on good governance to look into the interest rates charged by banks and other financial institutions operating in the country.

Deputy Minister for Finance and Planning Ashatu Kijaji said in parliament today while responding to a supplementary question raised by Chama Cha Mapinduzi (CCM) special seat legislator Munde Tambwe who wanted to know plans by the government to control high interest rates charged by financial institutions.

The legislator said despite President John Magufuli’s plea to financial institution to reduce the interest rate on lending two months ago, financial institutions charged by FINCA and PRIDE institutions were hovering at 33 percent.

Civic United Front (CUF) legislator for Konde constituency Khatibu Said Haji acknowledged CRDB Bank for reducing its interest rate to 17 per cent from 20 per cent.

Responding, the deputy minister said she does not have the powers to force banks to reduce interest rates, though he will ensure there is condusive environment for banks that will force them to reduce interest rates.

CCM legislator for Hanang, Mary Nagu also wanted to know plans by the ministry to ensure depository rate are increased and not only the reduction of of lending rates by banks.

Responding, the deputy minister said she would continue providing a friendly working environment to bankers to enable banks increase depository rates o that more people can use financial institutions.

Azania Post

Updated: 31.05.2018 18:29
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