Audio By Carbonatix
The finance ministry has released about GH¢1 billion to help with the cleanup of the microfinance and rural bank sectors.
Sources say the funds were released earlier this month for the project.
Background
Some microfinance companies over the last two years have been hit by some financial challenges resulting in the collapse of their businesses.
The development resulted in some depositors of these institutions struggling to realize their deposit.
Details of proposed clean up
JoyBusiness understands the Bank of Ghana would supervise the process as the regulator of the sector, however, Consolidated Bank would be making the payments to the customers or affected institutions.
This should mean that the funds would be lodged at the Consolidated Bank.
The funds would primarily go to pay off depositors of microfinance companies that have been affected or struggling to retrieve their funds.
The proposed date for the cleanup
It is not clear for now, the actual date the process would kick start, but what JoyBusiness have picked up is that it would happen soon.
Sources close to the Finance Ministry say they are fast-tracking the process, to soon make funds available for the savings and loans sector, because the cost involved is not that much as compared to the planned cleanup of the microfinance sector.
Institutions likely to be affected
Recent data released by Bank of Ghana showed that 319 microfinance companies are said to be in good standing.
JoyBusiness cannot independently establish that these funds would only go to those that are in good standing or all the companies.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
USTED dean warns GAUA strike could disrupt Ghana’s restored academic calendar
3 minutes -
Bechem meat processing factory 50% complete, set for March 2027 completion – Kwakye Ofosu
17 minutes -
Titus Glover criticises Mahama’s appointment of Afi Agbenyo as EC Deputy Chairperson
22 minutes -
GoldBod initiative has created over 1,300 public and private sector jobs – Sammy Gyamfi
25 minutes -
Financial wellness key to retaining Ghana’s skilled workforce – Merban Capital CEO, Benjamin Ackah-Nyamike
27 minutes -
Sidney Nii Oko Bampoe & Isaac Akuetteh Addo
34 minutes -
Haruna Iddrisu calls for ‘Big Push’ investment in health, education, sports and agriculture
35 minutes -
Ghanaian youngster Prince Amoako Jnr reaches new milestone with FC Nordsjælland
37 minutes -
Ho Teaching Hospital to get cardiology centre under Ghana Medical Trust Fund
40 minutes -
PAC pushes for effective use of GH¢25m by Tree Crops Development Authority
42 minutes -
UK MEET Fellowship challenges journalists to look beyond AI hype
44 minutes -
Kurt Okraku’s regime has ‘failed to perform’ – Kudjoe Fianoo demands resignation of GFA Executive Council
44 minutes -
Afenyo-Markin’s influence is limited by minority numbers in Parliament – Haruna Iddrisu
47 minutes -
Police administration is doing a yeoman’s job – President Mahama
50 minutes -
GoldBod tells PAC Bank of Ghana authorised its foreign exchange transactions
50 minutes