If not reviewed, they say, the new minimum requirement will result in many moneylenders, particularly those in the remote areas, being folded up by the Regulator.
“Micro Credit institutions are helping a lot of people in one way or the other especially in the remote areas. That is why we are saying that for those in the remote areas they do not need a minimum capital requirement of ¢2 million, he stated.
The was said by the Board Chairman for GMCA, Wilberforce Ofori, on ‘The Pulse’ show on the Joy News Channel on Friday, February 28, 2020.
“So we are pleading with them [BoG] that they should look at the figures and consider it,” he said.
The BoG in August 2019 announced a GH¢2 million new capital requirement for microfinance companies to meet by February 28, 2020, failure to it will attract sanctions.
However, Mr Ofori observed that the new minimum requirement is a significant increase from the earlier announced ¢300,000.00 minimum capital. He added that it will be difficult for moneylenders in Ghana to meet the revised minimum amount.
“Initially the minimum was ¢60,000, then it came to ¢100,000, then later ¢300,000 and right from there they are requesting for ¢2 million.
“That is why we are saying that they should consider somebody at the village somewhere, who wants to support community members because they cannot raise the 2million”, he added.
As a result of this, he added that the Association is considering merging two or more Micro Credit institutions to enable them to meet the requirement.
The Association’s Executive Secretary, Ebenezer Quartey, for his part, remarked there are more than 500 moneylenders in the country who are helping to better the lives of workers in the country to grow the economy.
“We have members who serve the Agric sector, lend money to farmers, we have members providing loans to fishmongers from about ¢500 to over ¢1000”, he said.
“So, we need to ask ourselves that if members are asked to raise ¢2 million will they be able to serve these sectors of the economy?” he rhetorically asked, adding however that he is hopeful the BoG will listen to their concerns.