Work within your boundaries – Micro-credit institutions warned

The Executive Secretary of the Micro-credit Association of Ghana, Ebenezer Quartey, has cautioned the outstanding 31 Micro-credit companies to comply with the laws regulating their operations in the country. He stressed that Micro-credit companies are money-lending companies and not “susu” collecting companies. Mr. Quartey said Micro-credit companies exist to provide credit to economically deprived individuals and businesses in a regulated and market-driven environment to improve standard of living. “Micro-finance and Micro-Credit provides employment for a section of unemployed Ghanaians, and it is the future of the country,” he told Onua FM’s Bright Asempa in an interview on Friday, June 14. Recounting the collapse some 39 micro-credit companies this year, Mr. Quartey stated that borrowers’ refusal to pay loans also account for this.

He suggested that “a special court to deal with defaulters is the best way to go in regulating bad borrower behaviour.” He noted that the Micro-credit companies have played and will continue to play a key role in deepening financial inclusion in the country. By Juliet Etefe||Ghana ]]>

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