Unpaid loans contracted by international firms collapsed UT and Capital Banks - Lecturer

Huge unpaid loans by international companies are the cause of the collapse of the UT Bank and Capital Bank, according to law lecture at Ghana Institute of Public Administration (GIMPA).

According to Mrs Clara Beeri Kasser-Tee, the takeover of the two banks by Government of Ghana maybe as a result of unpaid loans foreign companies contracted from the two establishments.

“Banks in Ghana prefer giving loans to international firms to grow their businesses than locals”, she observed.

“If you look at the history of Banks in the country, you will realize that the Banks like giving loans to international businesses”, she reiterated.

The tax law lecturer who spoke on Joy FM’s weekly news analysis show Newsfile indicated though she has not all the facts as to exactly the folding up of the two banks, huge loans contracted by foreign firms from the two played a major factor

“When I heard the announcement I did not make judgment on one way or other precisely because the facts [then] were insufficient”, Lawyer Clara Kasser-Tee confessed.

“Looking at the recent history of DKM I was happy that at least if there were risks to depositors fund, the regulator was proactive in trying to secure risk”

According to her, “the regulator followed laid down procedures and applicable rules” to ensure customers of the two banks do not lose their money as happened to DKM customers.

“With respect to securing depositors’ deposit it is a good thing to always move to protect the industry and to also protect depositors’ banks”, she pointed out during panel discussion.

“I believe that if there is anything untoward the companies that are affected they know what to do”, Lawyer Clara Kassar-Tee.