Members of Parliament have called on beneficiaries of the Microfinance and Small Loans Centre (MASLOC) to pay back their loans to ensure its sustainability.
According to them, non-payment of loans by defaulters is gradually collapsing the scheme, which was meant to support Small and Medium Enterprises (SMEs) in the country.
In a statement on the floor of Parliament, MP for Mfantseman, Ekow Hayford Quansah, called on Members of Parliament and other stakeholders to educate their constituents about the need to pay back loans they take from the scheme.
He said: “To make this scheme more sustainable and attractive, the following should be adopted: Members of Parliament who are guarantors in their constituents should educate them about the need to pay on time and in full.
“There is the need to depoliticise both the administration and the disbursement of funds to remove the political tag on the institution that makes some beneficiaries to not want to pay back.
“The government should increase its annual budget allocation to the scheme every year to enhance its client base.
“The scheme should put more administrative offices at the administrative levels to check its operations and activities.”
The lawmaker added that MASLOC alone has the capacity to project governance at the grassroots level when it is done and done well.
Contributing to the statement, a member of the Finance Committee and MP for Bia East, Richard Acheampong, also blamed the non-payment of the loans on the politicisation of the scheme.
He also added that the interest on MASLOC loans is too high for traders to pay back as expected.