Gov’t Releases Ghc 3.5bn To Pay Depositors Of Collapsed Financial Institutions

Ken Ofori-Atta

An amount of Ghc 3.5 billion has been released by Government as refund to depositors of collapsed financial institutions.

The Finance Ministry this known in a statement on Tuesday, September 15, 2020.

It confirmed that government has scrapped a much criticised plan to issue a 5-year bond to the depositors at no interest.

The Vice-President Dr. Mahamudu Bawumia signaled a u-turn following complaints from the customers who said paying back in bonds was unfair.

The customers are part of the client base of some 15 savings and loans companies, eight finance houses, 347 microfinance institutions, 39 microcredit institutions, one leasing company, and one remittance company that lost their licences between 2018 and 2019.

The Receiver of the collapsed microfinance companies, savings and loans, and finance houses, Eric Nana Nipah, proceeding with payment options of the affected customers.

Welcoming the decision, Mr. Tweneboah Kodua of the Ghana Association of Savings and Loans companies said “this is very good news.”

According to him, the affected clients are among the hardest hit by the coronavirus pandemic. The government’s u-turn, he indicated, “has come at the right time”.

“Better late than never,” he says.

The change in plans comes after pressure from customers of these failed institutions. Some threatened to make the matter an electoral issue.

By Melvin Tarlue