We’ve paid 99.2% customers of Savings and Loans, microfinance companies - Bawumia

Vice President, Dr. Mahamudu Bawumia has disclosed that 461,339 depositors of Savings and Loans as well as microfinance firms have so far been paid after their claims were validated.

He disclosed this in an interview on Asempa FM saying the figure represents 99.2% of the total number of customers.

“As we sit here today, all the banks depositors have been paid. And then you have the savings and loans and microfinance institutions, the depositors’ there–savings and loans were 300,089 depositors that have made reclaims– that is about 23 savings and loans. So far we have paid 296,344”.

He said “so the savings and loans, it’s only 3,745 that have not been paid because it is due to related and third party transactions which is being investigated. But all others have been paid.”

“If you look at microfinance, there were claims of 165,168 and the receiver has paid 164,995. So in total, the claims for the savings and loans and microfinance which is 465,257 separate claims and then we’ve paid 461,339. So 99.2 percent have been paid”, he emphasized.

He also described the approach used in the cleaning the banking sector as excellent.

“As I said the microfinance sector was one of the most poorly set up sectors. They [microfinance institutions] had made all sort of investments that were not tenable; savings and loans too. It was difficult essentially doing a rescue of all these struggling institutions”, he added.

The Bank of Ghana in August last year revoked the licences of 23 insolvent savings and loans companies and finance house companies.

The central bank in it’s statement noted that the move was necessary because the companies were insolvent.

The affected companies include GN Savings and Loans Ltd, Ideal Finance Ltd, Unicredit Savings and Loans Ltd, Global Access Savings and Loans Company Ltd, Accent Financial Services Ltd, Midland Savings and Loans Company Ltd, First Allied Savings and Loans Co. Ltd.

In May 2019, the BoG revoked the licenses of 347 insolvent microfinance companies.