The Governor of the Bank of Ghana (BoG), Dr Ernest Addison has described as unimpressive the slow rate at which the Receiver of the defunct financial institutions is recovering targeted monies.

Dr. Addison noted that out of more than GHS16 billion spent on some banks to protect depositor’s funds, only a little over eight percent has been recovered by the Receiver.

To recover the funds, the Receiver has commenced the auctioning of properties of the affected defunct banks to recoup money for depositors.

However, at a press conference to announce recent policy rate, the Governor of the Bank of Ghana said although the effort to retrieve depositors’ funds is there, the progress in terms of the amount of money being recovered is slow.

“The Receiver has been able to make some recoveries. They are not as impressive as we had expected. Last time I checked, about GHS1.4 billion has been recovered. Now we are looking at the loan portfolio of these banks that were resolved and it was over GHS16 billion. So if you’ve recovered just GHS1.4 billion out of the GHS16 billion, it tells you that there is a lot of work that has to be done. So yes the effort is there but progress in terms of the money that they are recovering is slow,” he observed.

Background
The Bank of Ghana in May and August last year [2019] revoked the licenses of 347 microfinance and microcredit companies and 23 Savings and loans and finance houses for various regulatory infractions.

The Receiver for these collapsed financial institutions began the auction for vehicles and motorbikes of institutions today [Monday, February 3, 2020].

The exercise which is to take place for five days [Monday, 3 February 2020 – Friday, 7 February 2020] forms part of measures to defray monies due the affected customers of the collapsed financial institutions.

Under the auspices of the Receiver, Eric Nana Nipah, the auction is being carried out by three firms; Wildos Mart, Yakarmata Mart and Broadway Mart.

Source: Citinewsroom.com