Makueni Governor Kivutha Kibwana unveils a plaque marking the opening of
Family Bank Wote branch. He is with the bank’s chairman Wilfred Kiboro,
founder Titus Muya and retail director David Thuku. PHOTO | FILE
- DAILY NEWS Reporters in Dodoma
INTEREST rates charged by local commercial banks are expected to lessen following the directive by the government to public institutions to deposit their revenues in the Bank of Tanzania (BoT), the National Assembly heard yesterday.
“The banks will now be compelled to
extend services to the general population and eventually reduce interest
rates on loans as a means of attracting more customers,” the Minister
for Finance and Planning, Dr Philip Mpango, said here yesterday.
The former World Bank economist told
parliamentarians that the directive was among measures by the government
to control the financial sector towards reducing interest rates charged
by financial institutions.
“The government will continue putting in
place financial measures aimed at checking the rates,” Dr Mpango said
while responding to a supplementary question by Arusha Urban MP, Mr
Godbles Lema (Chadema) who expressed concerns over higher interest rates
charged by banks.
In another development, the Minister for
Industry, Trade and Investment, Mr Charles Mwijage, said yesterday the
government will empower the citizens to establish and develop business
ventures to enable them to fully participate in the economy.
“This is well articulated in section 57
of the Chama Cha Mapinduzi (CCM) manifesto for 2015-2020 which calls for
establishment of a national fund to empower small and medium
enterprises through collaboration with other financial institutions,” he
explained.
Mr Mwijage was responding to a basic
question posed by Special Seats MP Hawa Chakoma (CCM) on how the plan
will be implemented to empower entrepreneurs.
The Minister said the government would
engage social security and other financial institutions on establishment
of the fund which he said would be formed in the coming fiscal year and
start operations in 2017/2018
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