The Cabinet has approved the recapitalization and restructuring of the ailing National Investment Bank (NIB).

According to the Minister of Finance, Dr. Mohammed Amin Adam, this is part of the implementation of the country's Post COVID-19 Program for Economic Growth (PC-PEG) under the current IMF program.

Over the next 12 months, the NIB will receive a programmed equity injection of about GH¢2.3 billion to support its recapitalization and restructuring. The state-owned bank will be the beneficiary of this injection.

Addressing journalists to provide monthly economic updates on May 24, the finance minister stated that an initial injection of GH¢400 million is expected to be transferred to NIB before the end of this month [May].

"The plan also includes measures to strengthen the governance structure, improve operational efficiency, enhance supervision, and enhance risk management to improve and sustain the financial viability of NIB," Dr. Amin Adam said.

Under Ghana's 17th IMF program, the Bank of Ghana has committed to addressing the insolvency of under-capitalized institutions, including the NIB. This move is also part of efforts to address the long-standing under-capitalization of several special deposit-taking institutions (SDIs) following the banking sector clean-up exercise.

Following the recapitalization of some banks operating in the country after the banking sector clean-up exercise in 2017, the state-owned National Investment Bank, which was on the brink of insolvency, did not undergo recapitalization.

MA