All sectors need to support economy
The news that banks have agreed to cut interest rates after President James Michel urged them to carry out a review is welcome.
Their decision was announced on Thursday after the bank managers – seen in our picture – met Finance Minister Danny Faure, Central Bank governor Pierre Laporte and principal secretary for finance Ahmed Afif.
As Mr Michel has said, his government has put in place all the necessary structures and necessary reforms for the economy to grow, but all other partners need to play their roles for us to achieve the growth rate we need.
All parties, particularly financial institutions – commercial private and state banks and the Central Bank – have to play their role and so contribute to “oxygenating the economy”, as Mr Michel said.
But the commercial banks need to lend money at rates that will attract borrowers, so we can only hope that the interest rate cuts due to be announced later this month will be significant.
Many people had called for the liberalisation of the economy, with the private sector in the driving seat, and these two aspects have now been realised.
It is now up to us to make the best of the situation, planning to borrow wisely and repaying promptly as the bankers have been advising.
At Thursday’s meeting the banks said they are holding large sums of money at the moment and they made a commitment to reduce interest rates on loans. When they do so, those of us who are in the private sector – which normally runs the engine of economic growth – should take advantage and make the difference our country needs.
We must now be ready to act when the banks inject the new economic stimulus we have been waiting for, so as to improve the economy by marching on Together, Ready for the Future.