BoG blacklists 108 microfinance firms for closure

The Central Bank will start closing down about 108 illegal microfinance companies from next week.

The Bank in 2014 published names of some of the illegal companies in the dailies, but more of them have been identified since last year.

Earlier this week, Mr Raymond Amanfu, who is with the financial services department of the Bank of Ghana, told Starr FM the Central Bank had identified about 40 of the illegal microfinance firms for closure across the country.

But the number seems to have increased per an interview he granted Joy FM, which was aired on Thursday.

According to Mr Amanfu, most of the 108 illegal microfinance firms are located outside Accra.

Earlier, he had told Starr FM the Bank is going through the necessary procedures towards effecting the closure.

“We have just got approval. We are just going to go through what the law says we should go through.

“We have to get data on them, we have to do an audit to find out what properties they have…and then if we will revoke the licence, we give the list and the attached documents and properties that we have identified to the Economic and Orgnaised Crimes Office (EOCO),” he told Starr Business.

He also revealed that the minimum capital for microfinance firms will be increased to one million Ghana Cedis as part of measures toward flushing out illegal microfinance institutions.