We saved deposits of 4.6m Ghanaians with financial sector cleanup


The Vice President, Dr. Mahamudu Bawumia says over four million depositors would have completely lost their funds had the financial sector cleanup not been undertaken.

According to him, the erstwhile Mahama’s government’s poor administration of the economy put the country’s financial sector on the verge of collapse but through the intervention of the current government, the monies of depositors were saved.

He further disclosed that the clean-up cost the country GHS21 billion.

“We were on the brink of losing deposits of 4.6 million Ghanaians and that’s why we implemented the rescue plan and you had to essentially rationalize the banking system and make sure that the deposits were saved. So those deposits were saved and the government has had to expend close to GHS21 billion in the financial sector to save these depositors.”

Dr. Bawumia also indicated that the Receiver will start payment of depositors who had their monies locked up with Savings and Loan companies following the financial sector clean-up.

“I’m happy to say that so far, as of yesterday, I am informed that liquidity has now been raised to take care of all the Savings and Loans and the microfinance companies. So I think that the Receiver is going to go ahead this week to make payments to these groups,” he further added.

He made this known in an interview on Peace FM on Tuesday, August 25, 2020.

Banking sector reforms

The financial sector cleanup 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.”

The Securities and Exchange Commission (SEC) also 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 was pegged at GHS16.4 billion.

The collapse of the institutions left clients in distress as many of the customers have been struggling to retrieve their savings and investments.

 

 





Source link

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Ghanaian environmentalist appointed on Environment of Peace 2022 project

A Ghanaian Environmentalist, Chibeze Ezekiel has been appointed to the Panel of International Experts on the Environment of Peace 2022 (EP2022) project. The Executive Coordinator of the Strategic Youth Network for Development (SYND) will serve as a panel member. The EP2022 project is an ambitious new initiative that aims to increase global understanding of the […]

MTN modifies tariffs to reflect reduction in CST, gives 5% bonus on all recharges

MTN Ghana has announced an adjustment to its tariffs following the passage of the Communication Services Tax, CST, (amendment) Act 2020 (Act 1025) also known as ‘Talk Tax’, to reflect the reduction in the CST. This follows government’s announcement of a reduction in the CST, from nine percent to five percent as part of efforts […]

Compulsory wearing of nose mask directive extended by 3 months

President Nana Addo Dankwa Akufo-Addo has extended by an additional three months, the compulsory wearing of nose mask directive in Ghana. He announced this on Sunday, September 20, 2020, during his 17th address to the nation on the COVID-19 outbreak in Ghana. In announcing this, the president urged law enforcement agencies to ensure the directive […]

GPL, Division One League to resume with 25% spectators

Sports News of Sunday, 20 September 2020 Source: www.ghanaweb.com 2020-09-20 play videoFile photo President Nana Addo Dankwa Akufo-Addo has announced that domestic competitive football will resume on Friday, October 30. In his 17th televised broadcast to the nation, the president said, this is after due consultations with the Ghana Football Association (GFA). “With respect to […]