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General News of Thursday, 22 August 2019

Source: Ghana Guardian

Government could have spent far less on banking sector cleanup - Former BoG Governor

Former Deputy Governor of the Bank of Ghana, Dr. Johnson Asiamah has raised eyebrows about the amount of money been used in cleaning up the financial sector.

The Minister of Finance, Ken Ofori Atta disclosed during the presentation of the supplementary budget that the government will spend somewhere in the region of GH 21 billion this year by the end of the cleanup exercise with GH 14 billion cedis spent so far.

But the former governor of the central bank claims this government could have spent far less than what is currently been projected had they stuck to their original plans.

Speaking in an Interview with Joy News, the former deputy governor disclosed that just before the last elections Republik bank wanted to take over 5 banks with two initially and three at a later date.

And these 5 banks were struggling at the time and is part of the first 7 banks that metamorphosed into the current Consolidated Bank Ghana.

“Somewhere about two or three months before the last election we had a big delegation form Republik Bank from Trinidad and they came to do a presentation to us.

“They told us that they are very big in all other continents and wanted to expand on the African continent and use Ghana as a hub and then they can launch into Nigeria, Sierra Leone, The Gambia and others.

So that day when we finished I told the governor this is the solutions we have been waiting for.So their idea was to purchase 5 banks in Ghana and add it to HFC which they had bought at the time.

When they do that more or less it becomes like an organic growth because they are so big. That day they told us they wanted to start with two banks UT and Capital bank” he explained.

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