The Ghana Micro Credit Association (GMCA) has petitioned Bank of Ghana (BoG) to review and reduce the ¢2 million minimum capital requirement for lending institutions in the country.

During an interview on The Pulse on Friday, the Board Chairman for GMCA, Wilberforce Ofori indicated that money creditors, particularly in the remote areas, will have difficulty meeting the requirement set by the Regulator.

“Micro Credit institutions are helping a lot of people in one way or the other especially in the remote areas. That is why we are saying that [for those in] the remote areas they do not need a minimum capital of ¢2 million.

“So we are pleading with them [BoG] that they should look at the figures and consider it,” he said.

The BoG in August 2019 directed microfinance companies to meet their minimum operating capital set of ¢2 million by February 28, 2020.

It added that failure to meet this requirement will attract sanctions.

This, Mr Ofori observed, is a huge leap from the initial ¢300,000.00 minimum capital and it will be difficult for credit operators to achieve it.

“Initially the minimum was ¢60,000, then it came to ¢100,000, then later ¢300,000 and right from there they are requesting for ¢2 million.

“That is why we are saying that they should consider somebody at the village somewhere, who wants to support its community members [they won't be able to] because they cannot raise the 2million.”

He further added that the Association is considering merging two or more Micro Credit institutions to enable them to meet the requirement.

The Association’s Executive Secretary, Ebenezer Quartey on his part said there are over 500 lenders in the country who are helping in various means to better lives of active workers to improve their lives and grow the economy.

He said: “We have members who serve the Agric sector, lend money to farmers, we have members providing loans to fishmongers from about ¢500 to over ¢1000.”

“So we need to ask ourselves that if members are asked to raise ¢2 million will they be able to serve these sectors of the economy?” he quizzed.

Mr Quartey was however hopeful that BoG will listen and pay heed to their request.

Watch the full interview below: