Interest rate capping is needed in Nyasaland

Dear judge Mbadwa,

You have heard that I have resurrected the motion that my predecessor introduced in the House two years ago before it was defeated by some sell-out members of Parliament.

My lord, I have said times without number that the financial institutions belong to a cartel that steals from the poor to maximise profits.

And since cartels are hard to break, I envisage a new resistant and a fight from them but that is not going to discourage us at all.

If we let the financial institutions get away with murder as they have been doing, then we should forget the dream of transforming this country beyond recognition within a very short period of time.

The poor and already thriving entrepreneurs need not only access to the loans, but they should also manage to pay back without killing their businesses.

We have reached a point of equating bank loans to some usury and no wonder people, including bankers themselves, trust village bank arrangements which most of whom have joined.

The interest rates in Nyasaland are the highest in this part of the continent and only serve the interests of the lenders.

My lord, you have noted that newspapers are flooded with advertisements by financial institutions of estates they seized from loan defaulters that they now sell to recover their money.

This is a sad development because it means that lending institutions are leading in impoverishing the citizens.

Some people, whose property was seized, gave upon life and eventually died early not because they were not shrewd businesspersons, but because the exorbitant interest rates made them slaves for banks.

Seriously, the financial sector should review its modus operandi in giving out loans and their recovery.

My lord, all commercial banks and financial institutions should be prohibited from recovering 100 percent principal of the loaned amount otherwise this eats up on the gains and capital of people’s businesses.

I am prepared to indulge your court on this matter if the motion fails in the House. Tatopa kwabasi.

Regards,

Angry Namalamba.