President Nana Akufo-Addo has assured depositors whose funds are locked up in collapsed microfinance institutions will have their monies paid back to them. Nana Akufo-Addo said he has been meeting the Finance Minister and the Governor of the Central Bank to address the issues of depositors.
“Both the Finance Minister and the governor of the Bank of Ghana were with me yesterday we are continuing to work out how quickly we can meet the commitment to ensure that everybody’s monies are refunded.” President Akufo-Addo gave similar assurances in December 2019 during his Christmas message to Ghanaians. He assured that they will get 100 percent of their deposits.
“Thus far, the Ministry of Finance and the Bank of Ghana have worked together to guarantee payments of 100% of deposits of customers of the failed banks which is being done. I have directed the Ministry of Finance to work with the Bank of Ghana to ensure that same applies to customers of microfinance and Savings and Loans Companies whose licenses have been revoked,” he said.
The collapse of a number of financial institutions led to their collapses and left clients in distress. “The financial sector clean-up commenced by the Akufo-Addo administration in August 2017 led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions.”
Most recently, the Securities and Exchange Commission (SEC) announced the revocation of licenses of 53 Fund Management Companies. The total estimated cost of the state’s fiscal intervention, excluding interest payments, from 2017 to 2019 is estimated at GHS16.4 billion.