Vice President, Dr Mahamudu Bawumia says the decision to clean the banking sector was painful but very necessary.
According to data from the Bank of Ghana, the country’s financial system at the time, was on the brink of total collapse, a situation he described as scary.
He also argued that the signs were already seen in some savings and loans companies because some were not paying the depositors.
The Vice President likened the issue to a cancer in the throat that needed to be cut off to avert further spread of the cancerous cells.
“We had a situation where you had cancer and it is in your throat and if you don’t cut it off, it’s gonna spread and we had to cut it off,” he said.
Dr. Bawumia further explained that government recognized the problem and took courageous steps to tackle the problem. He insisted that, “government is not elected to make the easy decisions and it is the hard decisions that often distinguishes a good government from a not so good government.”
In his view, the measures taken safeguarded the investments of 4.6 million depositors.
“In the end, we saved the banking system and the bigger financial system and safeguarded the hard earned lifetime investments of 4.6 million depositors many of whom are workers. We would have had a collapse and this economy would not have recovered that easily, if everybody lost their savings in the bank,” he added.
He made these comments at the Industrial and Commercial Workers Union’s 11th Quadrennial Delegates Conference at the University of Professional Studies, Accra (UPSA).
Speaking on the theme, ‘Impact of Covid-19 Pandemic on business and Labour: The role of social partners’, Dr Bawumia noted that in all, a total of GH¢21 billion was spent to save the depositors.
He explained that it was also to instill confidence in the banking system, arguing that, “without that rescue package of spending 21 billion cedis, the situation would have been different.”
He also rejected claims that the approach adopted was harsh.
“The question therefore arises, was this too bitter a pill, did we go overboard or did the Bank of Ghana go overboard. But thankfully DKM customers have all been paid,” he said
- ECG’s IT department resisting checks and balance moves by MD – Kwadwo Poku
- Scores of residents displaced, others trapped as Weija, Oblogo and Tetegu flood
- Mankessim murder: We didn’t commit crime with mason; he only dug hole for burying a victim – Chief
- Watch Daddy Lumba break down his hit song ‘Yene Wo Sere Kwa’
- NSMQ 2022 launched; fixtures for preliminary stage released
- ‘I have unfinished business with Black Stars’ – Milovan Rajevac
- I am still receiving threats from people on social media – KiDi
- Exclusive photos: Hundreds rendered homeless at Ashalaja
- Kwesi Yankah: Dear Ace Ankomah, the Birim River is gone
- The viral lynching that was to end Nigeria’s mob justice
- Somalia drought: So weak from hunger she couldn’t bury her child
- Journalists urged to build regional cooperation in the fight against human trafficking
- Akufo-Addo won’t declare a state of emergency -Dr. Norman
- Our leaders are either complicit or incompetent – Ken Ashigbey on galamsey
- I’m not expecting much from Hearts of Oak in Africa because of inconsistency – Amankwa Mireku
- We’re long past the state of emergency – Kofi Bentil on galamsey
- Elon Musk Twitter deal back on in surprise U-turn
- Police on manhunt for man flogging toddler in viral video
- I’m a record-breaker, but they hate to project it – Zahara says of critics
- I am grateful to Asantehene and other chiefs for protecting Dr. Bawumia – Nayiri
- Nigerian child killed in ‘bullet-proof’ charm test
- 95% of human trafficking survivors in shelter homes are Nigerians – Gender Ministry
- From the streets to Mandela’s feet – Zahara tells her story
- Small Scale Miners unhappy with Lands Ministry handling of Wontumi’s mining firm
- Livestream: PM Express discusses ‘Galamsey’