Ghana has been ranked the second highest in terms of the lending rates in the world, this according to Trading Economics.
The global economics research body established their findings by using the lending rates of bank in the country. The research opined that whereas banks in Ghana pegged their rates at 26%, microfinance institutions were pegged around 70%.
Malawi rank first in the world with the interest rates of 27% as at March 2016.
Businesses in Ghana have complained about the high cost of borrowing and the effect on their business. The Association of Ghana Industries have consistently cited the high interest rate as a big obstacle in doing business in Ghana.
Interest rates around the world, both short term and long term, are exceptionally low these days. The United States of America government can borrow for 10 years at a rate of about 1.9%, and for 30 years at about 2.5%.
Rates in other industrial countries are even lower. For example, the yield on 10-year government bonds is now around 0.2% in Germany, 0.3% in Japan and 1.6% in the United Kingdom. In Switzerland, the 10-year yield is currently slightly negative, meaning that lenders must pay the Swiss government to hold their money.