Gov’t Releases GH₵3.5bn To Pay Depositors Of Collapsed Financial Institutions

Government of Ghana says it has released GH₵3.5bn as a refund to depositors of collapsed financial institutions.

In a statement from the Finance Ministry, the government comfirmed that it has scrapped its initial plan to issue a 5-year bond to the depositors at no interest.

The customers to benefit from government's bail-out, are part of the client base of some 15 savings and loans companies, eight finance houses, 347 microfinance institutions, 39 microcredit institutions, one leasing company, and one remittance company that lost their licences between 2018 and 2019.

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Meanehile, the Receiver of the collapsed microfinance companies, savings and loans, and finance houses, Mr Eric Nana Nipah, proceeds with payment options of the affected customers.

The Security and Exchange Commission (SEC) has dismissed a request by the Coalition of Aggrieved Customers of Menzgold Ghana (CACM) to be included in the government’s bailout fund set up to pay locked up funds of depositors of defunct financial companies.

SEC in a statement signed by the Director-General, Reverend Daniel Ogbarmey Tetteh,  said that the target of the bailout was clearly defined and did not cover Menzgold customers.

“The SEC has noted with concern the plight of customers of Menzgold due to the company’s failure to return client’s funds. Unfortunately, your request for inclusion cannot be acceded to because the target of the bailout is clearly defined and does not cover Menzgold customers”

It also noted that Menzgold was not an asset management company regulated by the SEC.