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General News of Saturday, 17 November 2018

Source: Myjoyonline.com

Mahama criticises government's 'inept' handling of banking crisis

Former president John Mahama has described the government’s handling of the banking sector crisis as poor.

The National Democratic Congress (NDC) flagbearer aspirant said, “Akuffo Addo’s administration’s predatory approach towards indigenous investors in the banking sector has created a panic run on the remaining surviving Ghanaian financial institutions.”

Speaking at a congress organised by the NDC to elect new party executives, he explained that the inept handling of the banking crisis has led to the almost complete collapse of the local finance sector.

In 2017, UT and Capital bank doors were closed permanently and according to the Bank of Ghana (BoG) the banks were “unable to develop an acceptable plan”. The BoG indicated in a statement that it made efforts to help UT Bank and Capital Bank recover via private alternatives.

The Central Bank said there were “repeated agreements between the Bank of Ghana and UT Bank and Capital Bank to implement an action plan to address these significant shortfalls.”

However, the owners and managers of UT Bank and Capital Bank were unable to increase the capital of the banks to address the insolvency.

Also, in 2018 the Bank of Ghana created the Consolidated Bank Ghana to take over the struggling banks, BEIGE, Sovereign, Construction, UniBank and Royal Bank.

According to John Mahama, the dissolution of the banks “has gravely affected small and medium enterprise lending and has caused significant job losses.”

He told delegates that the choices they make at the congress will contribute to the future of the NDC and Ghana “the congress represents the hopes and aspirations of the country.”

The former president told delegates to select formidable leaders who will lead the party to victory in 2020 and beyond.

“We must put our best foot forward to rescue Ghana from the abysmal performance of the Nana Akuffo Addo government,” Mr. Mahama said.