For businesses, this is the worst period for borrowing and doing so will be tantamount to business suicide following theÂ COVID-19Â outbreak, Professor Peter Quartey, an economist and Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, has said.
He explained that with the prevailing global uncertainty, this is evidently the worst time to borrow â€¦, except of course for survival.
â€œFor businesses, this is the worst period for borrowing and doing so will be tantamount to business suicide.
â€œAny individual that borrows for the purpose of starting a new business or for expansion of its existing business may be in for a rough time. Except your business is in the food chain, and other essential or fast moving consumer goods (FMCG), then it will be unwise to borrow now,â€ he said in a write up.
He added : â€œMeanwhile, if you do not have money to stock your house with food under the current situation, please look for friendly loan to do so. However, a salary advance from the bank is not the right decision to make. I must also add that borrowing to invest in capital assets at this time is also not the right path to take.
â€œIt is time to begin to reap what has been sown â€¦ . It is also the time to sow slowly. It is the time to take a critical look at different available seeds and be selective in sowing them.
â€œSome investments will continue to drop fruits despite this pandemic while some are already in jeopardy and their value nearly wiped out. Very soon, we will begin to see many tenants owing landlords (if you are planning based on expected rental income, please develop plan.
â€œWe will continue to see the value of companiesâ€™ equity shares crashing, foreign currencies losing value etc. Be careful how you invest your money at this time so that you do not burn your fingers.
â€œThe general advice is to put your money in an investment that will at least retain its value even if it does not grow in same.â€