The President of the Republic of Ghana, H.E. Nana Addo Danquah Akufo-Addo has assured that customers of defunct savings and loans, and microfinance companies will be paid their monies in full, soon. He revealed that from Monday, 24th February 2020, the customers will start to receive payments for the locked-up funds in these companies.

Addressing Parliament during this year’s State of the Nation Address, and monitored by skyypowerfm.com, H.E. Akufo-Addo stated that the receiver of the Savings and Loans and Microfinance institutions will be paying customers beginning next week.

“I am informed that the receiver of the savings and loans and the Microfinance institutions will begin, on Monday, 20th February 2020, making payments to their customers with an amount totaling GHC5 billion, in addition to the GHC13 billion being paid to the customers of the failed banks,” he stated.

The financial sector experienced a shakeup in the past two years when the Central Bank, Bank of Ghana, revoked the licenses of over 300 microfinance companies and microcredit or money lending companies on Friday, May 31, 2019.

According to the BoG, 192 of the microfinance companies were insolvent with another 155 ceasing operations even before the action of the regulator.

The revocation, according to the BoG was in pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Central Bank to revoke the license of a bank or Specialised Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days.

Story by: Samuel Kojo Brace/Skyy News/Takoradi.

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