GHc 5bn released to pay customers of defunct S&L’s and MFI
Ken Ofori-Atta, Finance Minister
The Ministry of Finance has released GH¢ 5 billion to the Receiver of the defunct Savings and Loans and Microfinance Companies, as well as the Official Liquidator of the Micro Credit companies through Consolidated Bank Ghana (CBG), in a combination of cash and bonds to fully settle all validated claims due depositors of failed Specialised Deposit-Taking Institutions (SDIs).
This intervention will provide liquidity and guarantee the funds of individuals, businesses, and financial institutions that have been locked up in these defunct financial institutions, pending the completion of the Receivership exercise. With this intervention, all depositors will now be paid in full.
It will be recalled that the Ministry initially provided funds for the Receiver to settle validated depositor claims of the defunct SDIs of up to GH¢20,000 per depositor, with the understanding that the remaining validated claims would be settled as and when value was realised from the sale of the assets of the defunct institutions. However, due to the slow process of recovery in the receivership process, the Ministry has now made available these additional resources to pay all remaining validated depositors’ funds.
All depositors affected should note that the Receiver and CBG will provide them with a detailed plan and procedures to fully settle all outstanding depositor claims in cash and fixed instruments once the claims have been validated in line with the resolution process.
The Public will note that, with this intervention, Government will have so far spent about GH¢17.7 billion on the resolution process, GH¢11.65 billion for the banking sector and GH¢6.1 billion on the SDIs and MFIs. We expect that the recent accelerated pace of the prosecutions and an intensification of the civil recovery process under the Receivership will result in substantial recovery of these monies for the Treasury.