Government has released ¢3.5 billion to settle all outstanding claims of depositors of defunct financial institutions including savings and loans firms.

In a statement by the Receiver, Eric Nipah, he said, "with effect from September 16, 2020, affected depositors may contact any branch of Consolidated Bank Ghana Ltd (“CBG”) the paying bank to access their newly created Cash accounts which were originally designated as Commercial Paper (Bond) accounts at the bank ie CBG.

GHS6.07 billion had already been released to some depositors of these resolved companies in cash and bonds, leaving an outstanding amount of GHS402 million to be paid to the remaining depositors.

Of the GHS6.49 billion required to fully settle all valid depositor claims, about GHS3.56 billion of these claims were initially settled with Government-backed bonds.

He explained that the payment "is in line with government’s commitment to protect depositors funds and to shore up public confidence in the financial system, and government made available to the Receiver of the above resolved companies, as well as the Official Liquidator of the Micro Credit Companies in official liquidation,  a combination of cash and Commercial Paper totalling approximately ¢6.49 billion to fully settle the valid depositor claims on these institutions."

On August 16, 2019, the Bank of Ghana revoked the licences of 23 insolvent Savings and Loans companies and Finance Houses.

It had earlier on May 31, 2019 revoked the licenses of 347 microfinance companies.

These actions were part of the financial sector clean-up where some financial institutions had become distressed. The decision was in line with Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.