Ghana’s banking sector crisis: Finance Minister hints customers of defunct financial institutions will be paid in full by the end of 2020

Ghana’s Finance Minister, Ken Ofori-Atta has hinted that depositors of the various defunct financial institutions will be paid their deposits in full by the end of 2020.

Ken Ofori-Attta

The Minister who was speaking on Accra-based Joy FM was answering a question on the government’s intention to settle customers whose deposits are stuck due to the banking sector clean-up.

He said “right now from our assessment, I think we have a GH¢16.28billion [target], we have done about GH¢12billion and we have GH¢4bilion that we have to do. With that as I mentioned, I have about GH¢1 billion somewhere and then I can also add some paper to that.”

His comment is coming after President Akufo-Addo said that he had asked the Finance Ministry and the Bank of Ghana (BoG) to work together to ensure 100% payments are made to depositors.

“We've had to take painful but necessary measures, to sanitise and save the banking system, a process which I know has brought discomfort to many a household. The country is by no means out of the woods yet, but there is a growing sense of confidence that with hard work and determination, Ghana will make it, and collectively, we will secure our future.”

“Thus far, I have directed the Ministry of Finance to work with the Bank of Ghana to pay back depositors in full and to ensure that same applies to customers of microfinance and savings and loans companies whose licences have been revoked,” the President had said in his 2019 Christmas message.

When the Finance Minister was asked if the payment will still be made, he responded saying, “I don't know what the President has promised that has not happened. It has to happen.”

He admitted that even though this is a huge task “it leads to our realisation of how we should be more circumspect as a country, as investors as individuals and that’s just a painful lesson.”

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