Ghana Union of Traders’ Associations (GUTA)
Ghana Union of Traders’ Associations (GUTA)

The Ghana Union of Traders Association (GUTA) has commended the government on its efforts to establish an Enterprise Credit Scheme (ECS) to aid the private sector to access credit at reasonable lending rates.

GUTA believed that the GH¢2 billion credit and guarantee scheme that would starts in 2020 would help small and medium enterprises expand and contribute meaningfully to revenue generation through the payment of taxes.

Reverend Joseph Paddy, the Public Relations Officer of GUTA said this an interview with the Ghana News Agency on Wednesday when reacting to the budget statement for the year 2020, said the move would help address one of the major challenges the union was facing.

“Credit is very expensive. The current average bank lending rates are very high, so we are unable to break even. It is around 30 per cent so it is a welcoming news,” he said.

While commending the government for not introducing new taxes, he said it was the desire of GUTA that special levies were to be taken off but this did not happened.

He urged the government to as a matter of urgency commence the upgrading of road networks in the country due to it adverse effect on the cost of doing business.

Mr Paddy said the introduction of a depositors’ scheme was good and encouraged the government to take steps to build confidence in the financial sector especially in the savings sector because of the disaffection the financial cleanup had caused.

He appealed to the government to ensure the stability of the cedi to the dollar to enable businesses to plan ahead confidently.

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