<<Print>>

1. Capital Bank received a total of *GHc620m* in Liquidity Support from the Bank of Ghana (BOG) and not GHc610m as has been widely stated.

The facility came in three tranches - first GHc150m (June 2015), then GHc300m (September 2015) and finally GHc170m (November 2016).

2. Liquidity Support is a facility extended by BOG to help banks with liquidity challenges to meet their obligations. It is part of the routine functions of the Central Bank as a lender of last resort. The facility when approved is held in the account of the bank at the Central Bank.

3. The *GHc620m* Liquidity Support extended to Capital Bank by the BOG was not free money as has been suggested but loans granted at an average interest rate of 25.1% over the liquidity support period.

4. In honour of its obligation, Capital Bank paid back a total of *GHc255m* to BOG (GHc10m was made as principal repayment while a further GHc245m was in regular repayments of about GHc12m a month).

The total amount of GHc255m paid back to BOG is the equivalent of 40% of the entire liquidity support. Capital Bank continued to meet its scheduled monthly repayments till the bank was taken over.

5. An amount of *GHc130m* was placed through All-Time Capital. Out of that, GHc65m was returned to Capital Bank. GHc65m ended up in shares of Sovereign Bank which were later surrendered back to the BOG.

6. An amount of GHc27.5m earmarked as Business Promotion was called into question. Repayment of that has already begun.

7. The remaining amount of GHc207.5m was used for routine banking operations throughout the period of the Liquidity Support. This amount formed part of the assets of Capital Bank that passed on to GCB Bank after the take over.

8. *Summary of Utilisation of Liquidity Support:*
a. Repayment to BOG - GHc255m
b. Shares in Sovereign Bank - Ghc65m
c. Repayment from All-Time Placement - GHc65m
d. Business Promotion - GHc27.5m
e. Routine Banking Operations - GHc207.5m
Total = *GHc620m*

CONCLUSION:

The entire Liquidity Support of GHc620m given to Capital Bank by the BOG was fully accounted for.

It is important to note that the Boulders Report is not new.

As with all audit reports this has to be interrogated.

EOCO begun a thorough investigation early this year that involved all relevant stakeholders.

It is expected that the outcomes of any rigorous investigation will affirm this position or be very close to it.