Santaco urges Governor to speak to banks

Thursday, May 21, 2009

Pretoria - The South African National Taxi Council (Santaco) has appealed to Reserve Bank Governor Tito Mboweni to speak to commercial banks regarding the review of rates levied on finance for taxis.

"Mr Governor, all we request from you is that you appeal on our behalf, to the banks to review the interest rates levied on taxi finance and that they apply the same standards they use for commercial lending," said Santaco in an open letter to the Governor.

The letter comes after Mr Mboweni raised concern over the difference between the central bank's repo rate and the commercial bank's prime lending rate.

Mr Mboweni and the Banking Association of South Africa are due to discuss this matter at a meeting scheduled for Thursday, the Reserve Bank and the association have confirmed.

The central bank's repo rate currently stands at 8.5 percent while the commercial banks' prime lending rate stands at 12 percent.