Report says Government of Ghana has unleashed about GH¢1.2 billion to protect depositors of savings and loans companies

August 28, 2019 4:49 PM

The Government of Ghana has made provision of about GH¢1.2 billion to protect depositors of savings and loans companies.

Dr Ernest Addison, Bank of Ghana Governor

A Bloomberg report said government of Ghana has released GH¢1.2 billion to protect depositors of savings and loans companies.
The move comes after the Bank of Ghana (BoG) revoked the licences of 23 of the companies.
The BoG has hence asked affected depositors to liaise with the receiver, Eric Nana Nipah, to retrieve their locked up funds.

This comes after the Bank of Ghana (BoG) revoked the licences of some savings and loans companies in the country.

The report noted that the GH¢1.2 billion is to help pay some funds of depositors in these collapsed financial institutions.

Background

The Bank of Ghana in the release announced the revocation of the licences of 23 savings and loans and finance house in the country.

Although the central bank embarked on the exercise, it did not mention how much that exercise will cost the state.

The previous clean-up of the banking, as well as the microfinance sectors, cost the state at least GH¢12 billion. But the central bank did not provide a figure regarding its latest exercise.

The BoG has directed that depositors of institutions affected are to liaise with the receiver, Eric Nana Nipah, to retrieve their locked up funds.

Mr Nipah stated that customers are to submit proof of debt forms at their various financial institutions.