The Receiver for the 347 Microfinance institutions, 23 savings and loans and finance houses, whose licenses were revoked last year, has announced the commencement of processes to complete final payments to depositors.
In a press release issued on Monday, March 2, 2020, the Receiver explained that full and final payments are ongoing in line with government’s commitment to protect depositors’ funds and to shore up public confidence in the financial system.
He further noted that at the commencement of the resolution process, the government provided the receiver with funds to offset the growing economic hardship that vulnerable depositors were likely to face.
Following this, the payment of the remaining 40,000 depositors’ claims began on Monday 24th February 2020.
As of Friday 28 February 2020, depositors’ claims worth over GH¢700 million, had been transferred to Consolidated Bank Ghana for onward disbursement.
Out of over 360,000 depositor claims, which includes 39 Microcredit Companies placed under official liquidation, more than 320,000 in a number of validated claims were fully settled in cash.
The release also noted: “to fully settle the remaining 40,000 depositor claims in these receiverships as well as in the official liquidation of the 39 MCCs, government provided additional funding by way of a combination of cash and bonds totaling approximately GHS5 billion to the Receiver and Official Liquidator.”
Some customers with huge sums unhappy with payment in bonds
Meanwhile, some customers of the defunct microfinance and savings & loans companies, who visited the head office of the Consolidated Bank Ghana last Thursday, February 27 to retrieve their locked up capital, have decried the mode of payment 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.
A retired soldier who is part of the angry customers told Citi Business News his GHS 602,000 is to be in invested as a bond, although he has no documentation to that effect.
“The message I received said that they are paying me GHS 50,000 of the GHS 602,000, while the rest will be issued in bonds. I asked how much interest and for how long, but I was only told that it will be held for five years. All of this is by word of mouth. Although I demanded for a written agreement between the government or the bank and I, they are not responding to that. I think the whole thing is being done in secrecy,” he opined.