The closure of Heritage and Premium banks cost the government GHC1.4 billion, according to the Bank of Ghana

The Governor of the Bank of Ghana, Dr Ernest Addison, has disclosed that it cost GHC1.4 billion for the resolution of Heritage and Premium banks after the banking licences of the to banks were revoked early this year.

Dr Ernest Addison, Bank of Ghana Governor

At the Monetary Policy Committee press conference, the governor explained that the amount was the deficit realized after the Consolidated Bank took over the good assets of the two banks.

“If you look at the debt stock for the first quarter, you will see that there has been an increase of about 5% of GDP, representing the sovereign bond [Eurobond] issue of the $3 billion but in addition to that, you will find that there was a bond that was issued for the banking sector – GHC1.4 billion.”

“This was for the last two banks – Premium Bank and Heritage Bank. This is the net gap and the instrument was issued in March,” the Governor added.

This revelation by Dr Addison increases the amount used in the resolution of banks between 2017 and 2019.

The BoG used over GHC9 billion in the resolution of the seven initial banks — UT, Capital, Sovereign, The Royal Bank, Beige, Unibank and Construction banks. Five of the banks were merged to form the Consolidated Bank.

The other two UT and Capital banks were taken over by GCB Bank.

The Bank of Ghana announced its decision to close down the two banks, Premium and Heritage, on January 4 this year.

The BoG said explained that the Premium Bank was insolvent while the Heritage Bank was closed down because its founder was accused of using funds from questionable sources to establish the bank.

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