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Business News of Tuesday, 13 November 2018

Source: primenewsghana.com

CBG: GHC1.4 billion interbank investments locked up

A sum of 1.4 billion cedis owned by other financial institutions is locked up with the Consolidated Bank as management of the bank says it does not have the cash flow to pay bulk depositors.

Some of the customers are financial institutions including Microfinance and Savings and Loans Companies who were saving with the five collapsed banks merged into the Consolidated Bank Ghana.

Deputy MD of Consolidated Bank, Thiaru Ndugu who disclosed this at a Town hall meeting with workers of the bank, said depositors who invested their money with the collapsed Beige Bank, UniBank, Construction Bank, Sovereign Bank, and Royal Bank would have to wait a little longer until it receives cash flow from the bond government issued to clear the mess after the revocation of the licenses of the banks.

“We are trying as much as possible to consult the customers and make them understand exactly what is happening. We were given a bond and that is the only cash flow we can pay the depositors with,” Mr. Ndugu explained.

He said owners of the affected companies have been threatening them.

“We held a meeting and we told them we can only match them to what the government gives us. The Governors were there. It was at the Bank of Ghana. It was a bit of nice and a bit of nasty experience with them. They threatened us, we explained the situation, the Governors also explained it to them that it is the truth. So they told us to go and come back with a proposal so we are meeting them next week.”

Government has announced a GHc 5.7 billion bond towards the purchase and assumption of all deposits and other good assets of the collapsed bank.

However, the CBG is yet to cash the bond.

Other organizations also affected are government agencies and Pension and Asset Management Companies.

According to Mr. Ndugu, management had already met heads of the affected government agencies who have agreed on a payment plan.

“We met the government agencies and most have been profiled. The payment we agreed with them is five years from now at 7. 5 percent per annum.”

After the collapse of the five banks, customers with huge investments have not been able to access their funds, a situation which has caused some Microfinance companies to be unable to pay customers’ deposits.

Mr. Ndugu, therefore, urged the workers to pass on the explanation to customers to avoid confrontations.