Banking clean up: Payment, recovery to be completed in 24 months

The Joint Receiver of the collapse banks and microfinance institutions has promised to clear all outstanding claims of the remaining depositors latest by 24 months.

According to Mr Eric Nana Nipa, there is currently an excess of over GH₵1 billion that needs to be paid to depositors who submitted their claims after the deadline on July 4th 2020.

He explained that he does not have the money to pay the depositors, however, a request for supplementary payment has been forwarded to the Bank of Ghana and the Ministry of Finance.

“I will say that substantial completion, and I say substantial because there are situations beyond my control by the legal cases. Until there is complete resolution to these legal matters we wouldn’t say that this exercise is over. But regarding those aspects or where I have control over, I’m very confident upon subject to additional funding being released by the ministry of finance and giving what EOCO is doing in terms of assets tracing and retrieval, I’m confident that within 18 months to 2 years I should have substantially completed,” he said on News File.

Responding to questions recently on how much has been retrieved from the banking clean-up exercise, the BoG Governor, Dr Addison said, “GH¢1.7 billion so far recovered but we are looking at total assets of GH¢25 billion. Just 7% of the work has been done and it is not encouraging.”

“Part of this problem again is what is going on in our courts. Things are not moving as quickly as one would have expected,” he stated.

The banking sector clean-up exercise was undertaken in August 2017. This led to the collapse of seven indigenous banks.

The Central Bank is looking forward to receiving GHC 25 billion from the defunct banks and savings and loans companies

Speaking at the 100th Monetary Policy Committee (MPC) press conference in Accra recently the BoG governor attributed their failure to recoup the targeted monies from the collapsed banks due to the hesitant attitude of the courts.

Source: Kasapafm