Government of Ghana forks out $168 million to pay off 1.2 million victims of 386 collapsed microfinance firms

The government of Ghana has made available over $168 million (GH¢900 million) to pay off the 1.2 million depositors and creditors of the 386 microfinance companies whose licences were revoked by the Bank of Ghana (BoG).

The Governor of the Bank of Ghana (BoG), Dr Ernest Addison

The Receiver of 386 collapsed microfinance companies, Eric Nana Nipah of PricewaterhouseCoopers disclosed the information to the media in a press briefing.

According to him, an assessment of the total debt shows there is about $206 million (GH¢1.1 billion) to be paid to both depositors and creditors of the collapsed companies and the government has made available the $168 million (GH¢900 million) to clear parts of the debt.

The Receiver says the amount provided by the government can pay the majority of the retail customers validated.

The Bank of Ghana (BoG) recently revoked the licences of 386 insolvent microfinance and microcredit companies in the country.

These included 192 microfinance companies and other 155 insolvent companies that have ceased operations.

The Central Bank in a press release Friday also revoked the licences of 29 insolvent microcredit companies.

But the Receiver said the central bank’s estimation after careful validation of the debt has released a sum of $168 million (GH¢900 million) to settle the affected customers.

Eric Nana Nipah says he will take 10 days to assess all the assets and liabilities of the collapsed institutions and take him another 30 days to process and validate depositors and creditors claims.

He further assured depositors that their monies will be paid from the amount government has earmarked for the process, while creditors will be put in a different category and be paid dividends.

After his assessment, payment will begin at designated Consolidated Bank of Ghana (CBG) branches.

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