Editor,

Refer to the story, "Risk management costs, limited capital cause of high interest rates – AMIR” (The New Times, May 5). It's a catch-22 situation. They are operating in a very risky market.

Increasing rates because of a risky environment is the best-worst option at their disposal.

The only way out would be: a) pushing for government to act as guarantor (that would hardly happen though), or b) apply a sliding rate for the good customers (those paying off debt on time – this is tough as well).

It's good that people are willing to take on debts and make our country grow.

Roger