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Business News of Tuesday, 20 August 2019

Source: citibusinessnews.com

Receiver secures loan from BoG to pay workers of collapsed MFIs

The receiver of the collapsed microfinance companies, Eric Nana Nipah has stated that he has secured a facility from the central bank to cater for some microfinance workers who were engaged to help the receivership process.

Mr. Nipah speaking in an interview with Citi News stated that some of the collapsed companies had funds in their accounts, hence his ability to pay their workers. But for microfinance companies that didn’t have funds, a loan has been secured from the central bank to cater for these workers.

According to him, the receivership process is only responsible for paying workers for work done after May 31, 2019, when the BoG announced the revocation of the licenses of the MFIs.

“In some cases, payments are not forthcoming. Quite a number of them have received their allowances on month by month basis. Some of them are being processed for payments. There is this group yet to be paid. When I took over, some of the companies had funds in their accounts and their vaults.

And for those companies, I am able to pay. Some of the companies had nothing in their coffers, and haven’t paid employees for months. But since I use the resources of these people, I have an obligation to pay them.

And their payroll is quite substantial, and what I have been doing is to engage with my principals, Bank of Ghana and I am happy to announce that the central bank has announced that they are going to provide funding in a form of a loan to be able to pay these workers,

I hope this week I am able to start the payment process and they will be paid everything they are owed after the post receivership process,” he said.

The BoG decision led to the withdrawal of more than 347 MFIs that have been declared as largely insolvent and unable to meet customers’ demands.