The government is to announce a GH₵2 billion bailout package for some six indigenous banks to enable them to meet the Bank of Ghana (BoG) deadline on recapitalisation, which expires today, December 31.
The package was hurriedly put together this month for the six, which are seen as well-governed, solvent but unable to meet the BoG GH₵400 million new minimum capital for banks on their own.
It is now seen as the only glimpse of hope to the six banks, who risk having their licences withdrawn or at best downgraded to savings and loans companies for failing to successfully recapitalise since September 2017 when the directive was issued.
One source said the GH₵2 billion is to be sourced by a special purpose vehicle (SPV), the Ghana Amalgamated Trust Limited (GAT), which the government incorporated on December 17 to execute the transaction.
The SPV is to mobilise the funds through the issuance of a bond that will be sold to both domestic and foreign investors, one of the sources involved in the structuring of the last-minute bailout package said. It added that the bond will be partially guaranteed by the government to make it "sweeter and comfortable" to investors to participate.
Although the modalities of the deal are still being fine-tuned, GraphicOnline is further informed that the central bank has since given its blessing to the arrangement, making it possible for the beneficiary banks to be classified as recapitalised.
Another source said it foresaw the number of beneficiary banks increasing to about eight as more indigenous banks come forward for the support.
Source: Daily Graphic
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BUT WE WILL KICK NPP OUT IN 2020 BCOS THEY ARE DESTROYING PUBLIC CONFIDENCE IN INDIGENOUS BANKS VERY FAST......WHY ARE CULPRITS OF THE SEVEN COLLAPSED BANKS STILL WALKING SCOT FREE...DEFAULTERS OF LOANS ARE THOSE WHO SHOULD BE PUNISHED ...BUT NOT INNOCENT CUSTOMERS AND THEIR PREVIOUSLY VERY SAFE BANKS TILL NPP APPEARED ON THE SCENE WITH EVIL MOTIVES
NPP IS REALLY A VERY WICKEDDD GOVT WHICH MUST BE VOTED OUT IN 2020 BCOS THEY DONT FEEL OUR PAIN AT ALL ...NPP DELIBERATELY REFUSING TO PAY CONTRACTORS WHO OWE THESE BANKS SO THE BANKS APPEAR INSOLVENT SO THAT NPP CAN DESTROY PERCEIVED ADVERSERIES IN THE BANKING SECTOR
WITH THE CURR ENT NEWS ON SOCIAL MEDIA, GN BANK MANAGERS MUST ISSUE A STATEMENT IMMEDIATELY THEIR CURRENT POSITION ON RECAPITALISATION. PLEASE YOUR COSTUMERS ARE NOT ILLITERATES..........
What do we expect when most of the S & L's have invested heavily in Menzgold and have been caught in the web. BOG must act fast to restore confidence in the Banking sector.
Find a good bank and put your money there. At least you know the GCBs are strong.
I have just realized that in Ghana now, you personally have to take your own safety and security of yourself or properties or money into your own hands. NEVER trust the existence of the "So Called Regulators". They are dominated by cronies, partners in crime, friends and so on of people who enter into an area of business with the pure aim of defrauding innocent public. These regulators will do nothing to help you because these crooks butter their bread. How on earth can we have a whole state apparatus where the president directly or indirectly appoints everyone including "cleaners" yet he can not have the same power or influence to bring people to order? I can see this country deteriorating to its worst should we continue to have the set of leaders we have now.
What about GN Bank? This bank receives GHC 10 million a month from Controller And Accountant General's Department for the payment of salaries of workers. Yet the bank is unable to pay workers. What is GN using the workers salaries for? And why is BOG silent ?
Edward bailout is not given to the customs rather the bank in order to save the bank from collapse. Savings and loans companies are much concern about the profit they get and not much concerning about the welfare of the customers. I hope that very soon the BoG will clump down on them. Yo go and deposit your money and they are unable to give back your money what kind of nansence is that?
Meanwhile Customers of First allied Savings and loans have still not being able to access their funds in 6 month some customers are dead because of no money for hospitals and drugs some have lost their school appointments some have being ejected from their homes instead of given the money to the banks where there is no panic withdrawals, why don't BoG give it to customers of First Savings and loans to lesson our pains why does the government not care about customers of Savings and loans, OR they are considered second class Ghanaians because they are mostly market women