The amount will also be used to help other finance houses that operate under the license of the central banks.
The initiative comes after the BoG cleaned up the banking sectors within the country.
The Governor of the Bank of Ghana, Dr Ernest Addison, who made the revelation said that the liabilities of the savings and loans and other finance houses were estimated at $1.3 billion (GH¢7 billion).
“We see the cost of the clean-up of the microfinance sector as not that much, compared to what we are seeing in the savings and loans and other finance houses, which is about GH¢7 billion,” he said, adding that, “We have done our analysis and the estimate of the clean-up of the sector is about $1.3 billion (GH¢7 billion), which we have to find to complete the process.
According to Dr Addison, the central bank is discussing with the Ministry of Finance to iron out the best module to save the sector that is almost in distress.
“The engagement will ensure that the necessary funds can be raised on the part of the government to cushion depositors of these institutions.”
The government would have to bear the initial cost of the clean-up exercise and later recover its liabilities from the assets of the companies.
There are currently about 37 savings and loans companies and 22 finance houses, with almost a quarter of them in distress, a situation which analysts say requires a shake-up.
Only eight out of the 37 companies operating in the savings and loans sector have paid-up capital above the minimum amount of GH¢15 million.
Although Mr Addison did not say when the clean-up exercise of the savings and loans companies would begin, it is expected that the process will begin before the end of the year