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Business News of Friday, 26 January 2018

Source: citibusinessnews.com

PwC selects ‘buyers’ of UT, Capital banks’ loan portfolios

The Joint Receivers of collapsed UT and Capital Banks, PricewaterhouseCoopers (PwC) has told Citi Business News it will select the institution with the most competitive option in defraying the loan portfolios of the two banks, as it reviews the shortlisted applications.

According to the receivers, this will ensure value for money and benefit affected customers of the two collapsed banks.

PwC, early this month [January 2018] requested for the submission of interests in the loan portfolios of the UT and Capital banks as part of processes of winding down their affairs.

Country Senior Partner of PwC, Vish Ashiagbor tells Citi Business News they’ll work to attract the best deal.

“We are now getting into the process of reviewing the portfolios and making an offer to the receiver in terms of what they want to buy. The receiver’s job is to maximize value so if you have an asset of any kind, in this case, we are talking of loans and advances and we get an offer, we are trying to sell to the highest offer that we can get because we are trying to make recoveries and realize cash for purposes of paying off the obligations of the banks so we are looking to who can buy the assets and give us value for them,” he explained.

Mr. Ashiagbor would not readily disclose any names of institutions that have shown interest in the loan portfolios of the two banks.

He, however, maintained that efforts are underway to resort to other legal means to retrieve outstanding claims due the two banks.

“I am not at liberty to disclose any names at this stage except to say that we have some expressions of interest… there are other approaches which involve actual recoveries which are also ongoing and in some cases, they may involve legal action as well which are also ongoing,” he added.

The Bank of Ghana in August 2017 revoked the licenses of UT and Capital Banks due to severe impairment of their capital.

The central bank allowed GCB Bank to assume the two banks in a purchase and assumption agreement.

Meanwhile, Mr. Vish Ashiagbor has assured of facilitating the process to ensure that all stakeholders have duly obtained their due.

“The receiver is going to institute measures to recover; we have the data as to who owes the banks and how much there are, we know the terms and what rights and obligations they have and that of the respective banks and we will collect them.”

PwC disengages workers

Last year, PwC disengaged the services of all 1356 staff of the defunct UT Bank and Capital Bank.

The total number which included staff on contract was made up of 689 from Capital Bank and 667 from UT Bank.

This paved the way for GCB Bank to re-negotiate their terms of engagement.