ADB to name and shame loan defaulters

Adb Bank. ADB

Wed, 22 Jan 2020 Source: www.ghanaweb.com

The Agricultural Development Bank (adb) says it will publish the names and pictures of loan defaulters if they do not pay up within 30 days.

For corporate bodies that are failing to payback their loans, the names of the companies and their directors as well as pictures will be published, 3news.com reports.

The bank’s decision to publish defaulters comes after an approval was given by the board of directors of the state-owned bank.

ADB said it will not hesitate to “use all lawful means necessary against defaulters” who fail to settle their indebtedness after the expiration of the 30-day grace period.

“This publication shall be the beginning of series of actions the bank intends to take to remind its debtors of their debts and the need to settle their obligations,” a notice issued Wednesday by the bank explained.

Loan defaulters have been asked to present a workable payment proposal for consideration, thus warning “failing which the bank shall be left with no option than to take drastic measures against any defaulters”.

On January 2 2020, adb was cleared by the Securities and Exchange Commission to issue 39 million ordinary shares to the Ghana Amalgamated Trust (GAT).

This was in line with the bank’s bid to raise 127 million cedis to meet the Bank of Ghana’s minimum capital requirement.

The bank and four other local banks which failed to meet the 400 million-cedi capital requirement at the end of the December 31, 2018 deadline were saved with the announcement of liquidity support for being well-managed.

The Ghana Amalgamated Trust was subsequently formed in January 2019 financially support the five local banks.

Source: www.ghanaweb.com
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