Government has or is coughing up a whooping amount of GH¢18 billion to pay depositors of the collapsed banks, savings and loans companies; and microfinances institutions.

The Akufo-Addo administration is paying GH¢13 billion to about 4.6 million affected customers of the collapsed banks and GH¢5 billion to depositors of the other financial institutions, totalling GH¢18 billion.

The president reiterated that all depositors of the savings and loans and microfinance institutions, including DKM which collapsed in 2015, will also receive 100% of their deposits, once the validation exercise is concluded.

According to him, the Receiver of the Savings and Loans and Microfinance institutions will begin, today Monday, 24th February, 2020, making payments to their customers.

These monies, totaling GH¢5 billion, as already indicated, are in addition to the GH¢13 billion being paid to the customers of the failed banks.

Government inherited a collapsing financial sector that has led to failing banks and others, causing considerable distress to many customers and their dependants across the country.

Many customers could not access their deposits in some of these financial institutions prior to the Akufo-Addo government assuming office. 

We therefore thank government for bailing out the millions of customers with this huge amount of money. It will cushion many people and bring back functioning lives to their families.

As President Nana Akufo-Addo indicated in his recent message on the State-Of-the Nation (SONA), this is money that the state “can ill-afford, and which would have gone to fund the many things that our communities are crying for”.

This colossal amount, if properly utilised, could do so much in the area of Ghana’s perennial infrastructure deficit.

However, the Akufo-Addo administration believes it is taking the right decision in paying all the customers of the failed banks and others.

The banking sector clean-up, according to many financial analysts, was necessary to rejuvenate an ailing financial sector in the country.

Consequently, many corporate governance measures have been put in place by the Bank of Ghana, under the strong leadership of Governor Ernest Addison, to prevent such monumental bank failures in the future.

It is believed that as a result of the financial sector clean-up, Ghana’s weak banking sector that the Akufo-Addo administration inherited is now well-capitalised, better managed, sound and liquid and the banks are now increasing their lending to the private sector to help propel the transformation of the economy Beyond Aid.

Whilst we commend government for coming to the aid of the millions of customers of these collapsed financial institutions, we also caution greedy depositors not to repeat the mistakes committed.

There’s no bank or financial institution that can afford and pay 100% interest rates to their customers. Such ridiculous interest rates can only be a lure to dupe gullible customers and all Ghanaians should be aware of this phenomenon.

We also strongly back government to hold those who have been responsible for these failures of financial institutions, including the supervisors and management of these institutions, accountable, through prosecutions.

It is important that those whose job it is to supervise the banks and other financial institutions will do their jobs honestly and competently.

We must not allow a few greedy bastards, in their capacities as CEOs or MDs of these financial institutions to toy with the lives of the majority.