Depositors’ locked up funds; government lauded over repayments

The Executive Secretary of the Ghana Association of Savings and Loans Companies (GHASALC), Mr Tweneboah Kodua-Boakye, has lauded Government for the decision to repay depositors’ locked up funds of of microfinance and S&L institutions.

Speaking on the ‘Business Focus’ programme on Monday, Mr
Koduah-Boakye says the decision to increase the pay-out amount, from the initial
GH¢10,000 to GH¢70, 000, by the central bank is “very instrumental and

“This is different from the earlier cap that if the money is available to us, we pay you and we don’t know when because they have to realize the assets to make payment.

“But this time round, they say that yes you have about 100,000, we are giving you a cash of 70, 000 and then 30,000 left you are given a paper that support that yes the Receiver owes you.

What this means, he said, is that Government has taken over the liabilities. Unlike the previous arrangements where the Receiver was the one was going to realize the assets and pay depositors.

Concerns raised over mode of payment

Some customers have expressed their displeasure over the mode of payments of their monies by the Receiver.

The customers say they have been told by the bank that those
who have funds beyond GHS70,000, will receive GHS 50, 000 in cash, and the rest
will be issued in a bond in 5 years.

But Mr Koduah-Boakye, is of the believe that the current mode
of payment was much better than what was previously communicated

“We would have wished that 100 per cent cash is paid,
but in the absence of the 100 per cent not paid what they are doing now is far
better than earlier arrangements.

“The Government has listened to our cry, which I think is
a good thing”, he added.

Claims payment

President Nana Akufo-Addo, on Thursday, February 20, 20120, during the state of the nation address, announced that depositors’ lock up funds of defunct Savings and Loans companies and microfinance institutions were going to be paid, starting on Monday, February 24, 2020.

ALSO READ: We’ve saved deposits of 1 million Ghanaians in cleaning banking sector- President Akufo Addo

Following this, GH¢5 billion was
released to the Receiver for onward disbursement to the customers.

So far depositors’ claims worth over GH¢700 million, has been transferred to Consolidated Bank Ghana for onward disbursement, as of Friday 28 February 2020.

This was contained in a press release issued on Monday,
March 2, 2020 by the Receiver of the defunct Microfinance and Savings and Loans

The statement also added that the Receiver had commenced processes to complete final payments of the locked up funds to depositors.

Ghana Talks Business

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Source : African Media Agency (AMA)

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