President Nana Addo Dankwa Akufo-Addo has given the assurance that Customers of collapsed microfinance institutions, savings and loans companies would start receiving their monies very soon.
Delivering his state of the Nation address in Parliament on Thursday, the President said, GH¢5 billion would be released by the government to settle all depositors of the defunct microfinance and savings & loans companies.
That, the President said, was expected to increase the cost of servicing locked-up funds as a result of the financial services sector crisis, to GH¢18 billion.
“All depositors of savings and loans and microfinance institutions including DKM, which collapsed in 2015, will receive 100 percent of their deposits once the validation exercise is concluded,” President Akufo-Addo said.
“I’m informed that the Receiver of the savings and loans and microfinance institutions will begin, on Monday 24 February 2020, making payments to their customers of these monies totaling GH¢5 being an addition to the GH¢13 billion being paid to customers of the failed banks.”
President Akufo-Addo noted that his government took the right decision with regard to the reforms undertaken in the financial services sector.
“We inherited a collapsing financial sector. The government is having to conjure up to GH¢13 billion to pay the customers of those institutions. This is money we can ill-afford.
“We will hold all those responsible for the collapse of the financial institutions to account, a process that has already started.”
This year’s State of the Nation Address marks the President’s fourth and last in his first term as President of the Republic.
His address is in accordance with Article 67 of the 1992 Constitution of the Republic of Ghana and the Standing Orders of the Parliament of Ghana.
Article 67 of the 1992 Constitution states: “The President shall, at the beginning of each session of Parliament and before dissolution of Parliament, deliver a message on the State of the Nation.
The address is to update the public on the government’s progress and outline plans for the next financial year and covered, in broad terms, areas such as the economy, education, health, security and infrastructure.