License revocation: Gov't makes available over ¢900m to pay affected customers

License revocation: Gov't makes available over ¢900m to pay affected customers
Source: Ghana| Richmond Hagan Agyiri | Adomonline
Date: 03-06-2019 Time: 06:06:44:pm
Finance Minister, Ken Ofori-Atta

The Receiver of 386 collapsed microfinance companies has disclosed that government has made available over ¢900 million to pay off 1.2 million depositors and creditors. 

Eric Nana Nipah of PricewaterhouseCoopers said, an assessment of the total debt shows there is about ¢1.1 billion to be paid. 

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

These include 192 microfinance companies having their licences revoked with another 155 insolvent companies that have ceased operations also suffering the same fate.

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

Related: Licences of 386 financial institutions revoked

According to the Central Bank’s estimation, after careful validation of the debt, ¢900 million will suffice in settling the affected customers.

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

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. 

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

Mr Nipah is assuring 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.