The Government has spent a total of GH¢17.7 billion on the clean-up of the financial sector, a statement from the Finance Ministry said.
Out of this figure, GH¢11.65 billion was used to settle depositors in the banking sector.
The remaining GH¢6.1billion was spent on the Savings and Loans Companies and Microfinance Institutions.
“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”, the statement read.
The President’s Announcement
On 20th February, President Akuffo-Addo announced during his State of the Nation Address that payment of locked up capital of the customers of the defunct Savings and Loans companies will to begin on Monday, February 24, 2020.
Following this, the Finance Ministry on the said date released a statement, indicating that it had released an amount of GH¢5 billion to the receiver of the collapsed Savings and Loans Institutions.
Consolidated Bank Ghana (CBG) was appointed as the Official Liquidator of the microfinance institutions to oversee the repayment of the depositors locked up cash.
So far, 800 affected depositors of the Savings and Loans Companies who lost their monies during the financial sector cleanup have been refunded.
The repayment was in a combination of cash and bonds to fully settle all validated claims due depositors of failed Specialised Deposit-Taking Institutions (SDIs).
Flashback
It will be recalled that the Ministry initially provided funds for the Receiver of the Savings and Loans companies to settle validated depositor claims of those institutions as well as Finance Houses.
It was agreed that GH¢20,000 was to be paid 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.
But due to the slow process of recovery in the receivership process, the Ministry has now made available these additional funds to defray all remaining validated depositors’ cash.
The statement added that all depositors affected should note that the Receiver and Consolidate process.
Source: Classfmonline
