Editor, RE: “Central Bank governor on the spot over interest rates” (The New Times, February 24). Why compare our interest rates with those of Kenya and Uganda which are relatively bigger economies than our country? Businessmen in each of these countries enjoy a bigger market than us and, therefore, it is easier for them to make bigger returns than in Rwanda. Banks would instead make more profits by lowering interest rates to attract more borrowers. For instance, instead of charging between 16 to 18 percent, lowering this range to 12 to 18 could increase loan portfolios and more profits for the banks. Sendi ************************** In which bank is the interest rate still at 16 or 18 per cent? That was the rate four years ago. Give me the name of any single bank here that charges 16% and I will rush there. Our banks are currently charging 20% or 21%. The issue is BNRs inability to devise other innovative ways of controlling the galloping inflation—the rest is simply rhetoric. Mugabo ************************** The Central Bank has played its part and the banks too are conscious not to overprice the loans. This explains why it is only in Rwanda where the cost of borrowing is predictable because it has remained almost flat for now the second year running. There is no other way BNR should intervene in a liberalised economy. Kabs
