Interest rates too high

Ruapehu Bulletin, Volume 6, Issue 290, 13 June 1989, Page 6

Interest rates too high

Small businesses are still playing 20 to 23 percent interest on their working capital, a figure that is discriminately higher than rates charged to big corporations and many other borrowers.

Mr Chamberlain said the combined group of sector representatives has accepted the bankers' offer to discuss these and other interest rate issues. Arrangements are underway for the group to meet with the Bankers' Association as soon as possible. staff, so the recent and debatable reduction in unemployment could soon swing upwards again. "The ground swell against the current interest rate policies must surely force our lending institutions to reduce interest rates overall, by improving their own efficiencies. They must redress the extra burden being placed on those sectors in the economy which are best placed to generate employment growth."

Brian Chamberlain, spokesman for the group campaigning against current high interest, stated today that financier's interest rate policies are extremely short sighted and totally unfair. "The crippling interest rates faced by small businesses are driving many of them right out of business. They are also the cause of the majority having to scale down their operations. This involves reducing their debt burden. "In time the banks will be the ones to feel the effects of these reductions and they should reassess their current lending policies in the interest of their own long term business." Mr Chamberlain said small businesses are also having to lay off