Financial sector clean-up: Pensions industry has about GH¢900 million with banks, Finance minister justifies the need for GH¢15.6 billion bailout

The Finance Ministry has revealed that the pensions' industry has about GH¢900 million saved in the banking sector, hence, the need for Parliament to approve a GH¢15.6 billion to protect the financial sector from a possible collapse.

Finance Minister, Ken Ofori-Atta

In a memo to Parliament, the Finance Minister, Ken Ofori-Atta, argued that the financial sector is very interconnected and for instance troubles from the banking sector could easily spill over to the pensions' industry, threatening the future of millions of workers.

According to the National Pensions Regulatory Authority (NPRA), the industry’s total assets under management (AUM) run in excess of GH¢10 billion.

Mr Ofori-Atta’s memo to Parliament said GH¢11.65 billion of the requested amounts would be used to protect depositors of the nine indigenous banks that lost their licences between 2017 and 2019 over certain regulatory breaches.

They include UT, Capital, Sovereign, Construction, Royal, Beige, Unibank, Premium and Heritage banks.

The rest of the approved funds will be used to sort out depositors in collapsed institutions in other various segments of the financial sector ranging from savings and loans, finance houses to fund management companies.

Background

The government of Ghana said it was on course to secure Parliamentary approval for GH¢15.6 billion bailout for the financial sector clean-up.

This follows after some media reports showed that Parliament had rejected the request.

The Information Minister, Kojo Oppong Nkrumah, who is also a member of the Finance Committee of Parliament who disclosed the information stated that contrary to the media reports, the request has not been rejected.

"The committee held a meeting on Thursday, 5th December 2019, and received the government’s request and even explored if the government could spend a bit more on the exercise.

The report of the committee is expected to be taken to the plenary this week for parliamentary approval," he said.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Pulse Influencer Awards 2022 is Live!

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Dance

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job