Governor of the Bank of Ghana (BoG) has revealed an amount of GH¢2.3 billion out of GH¢12 billion in assets have been recovered by the receiver of the defunct savings and loans companies.
According to Ernest Addison, all depositors of collapsed banks that became insolvent due to the clean-up exercise undertaken by the BoG have been paid.
“Some of the data that I have suggests that all depositors in the banking sector have been paid their locked-up funds except for those of related parties. In terms of recoveries, approximately GH¢2.3 billion out of the stock of GH¢12 billion in assets have been recovered and we still have a long to go.”
Dr Ernest Addison made this known at the central bank’s last Monetary Policy Committee press conference for the year to announce its decision on the monetary policy rate ahead of the upcoming general elections.
The central bank however has maintained its policy rate at 14.5 percent for a fourth consecutive time this year owing to economic growth indicators improving and reserve buffers remaining strong.
Meanwhile in August 2019, the Bank of Ghana revoked the licenses of 23 insolvent Savings and Loans companies and Finance Houses after it had earlier on in May 2019 revoked the licenses of 347 microfinance companies.
These actions were part of the financial sector clean-up where some financial institutions had become distressed.
The decision, according to the central bank was in line with Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.
