BANKERS URGED TO LOWER LENDING RATES

Dar es Salaam Regional Commissioner, Mr Saidi Meck Sadiki.

The Dar es Salaam Regional Commissioner, Mr Saidi Meck Sadiki, has called upon the central bank to direct financial institutions operating in the country to reduce interest rates on loans.

Mr Sadiki said lower interest rates would enable many Tanzania entrepreneurs access loans for purposes of starting up business ventures at affordable costs.

The RC made the remarks in the city on Wednesday at a dinner for clients of the United Bank Limited (UBL), following the visit of the firm's global president and Chief Executive, Mr Wajahat Hussain.

He said many Tanzanians wish to secure loans from different financial institutions to enable them start business but they fail due to prohibitive interest rates and conditions by financial institutions.

Mr Sadiki called for the government's intervention to ease the situation. "Many of our people wish to secure loans so that they can start business but when they look at the interest rates they turn their back for fear that they cannot afford to cover costs of the loans," he explained.

He said further that banks and non-bank financial institutions should change the trend of concentrating in urban centres and extend their services to people in remote rural areas.

"Rural people have also the right to enjoy financial services instead of travelling all the way to cities looking for bank services, my appeal to you UBL and other banks, go rural and don't concentrate in towns," he said.

Mr Hussain said the bank was impressed by peace and harmony in Tanzania, saying it was among factors that made the firm invest in the country.

Daily News