Collapsed savings & loans companies : Funds available to pay customers – BoG

The Bank of Ghana, BoG has said funds are available to pay customers of the 23 finance houses and savings and loans companies whose licences were revoked today.

The Central Bank says it has provided funds to ensure that the Receiver of the financial entities, whose licences have been revoked, will pay the affected customers.

“The Government has made available funds to enable the Receiver to pay depositors of the savings and loans companies and finance houses after validation of their claims. Other creditors of the failed institutions will be settled by the Receiver in line with the hierarchy or priority of creditors’ claims set out under Act 930,” the Bank of Ghana said in a statement.

The BoG, however, indicated that the Receiver for affected financial institutions, Eric Nipah will “in due course “announce when and where the payments to the depositors will be made.”

“The Receiver will in due course make an announcement with regards to when and where payments will be made. The Receiver will also indicate documents required from depositors and other claimants to facilitate the validation of claims.”

The Bank of Ghana on Friday, August 16 announced the revocation of licenses of 23 Savings and Loans Companies and Finance Houses because they were highly insolvent.

The Central Bank said despite the grace period it gave the affected institutions and their stakeholders to recapitalize, they were unable to get their institutions back on their feet hence the decision.

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