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Business News of Monday, 27 July 2020


Collapsed MFI’s and S&L: Submission of bids deadline for purchasing assets extended

The Receiver of the 347 insolvent Microfinance Companies and 23 Savings and Loans Companies and Finance House Companies, Eric Nana Nipah, has announced a two weeks extension of the deadline for the submission of bids to purchase assets of the insolvent firms.

According to a statement issued by the Receiver and copied to GhanaWeb, the initial deadline for submission was slated for Monday, July 27, 2020 but has since been extended to Friday, August 14, 2020.

The Receiver in a statement noted, “a key component of the Receiver’s mandate is to secure all assets of the resolved companies and maximise their realisations for the benefit of creditors.”

“Accordingly, in my press statement of 9 July 2020, I informed the general public of my intention to commence the second round of the sale of the assets of the resolved companies and requested prospective buyers to submit bids for evaluation on or before 27 July 2020. In response to the numerous requests for an extension of the deadline to enable prospective bidders appropriately respond to bidding requirements, I wish to inform the general public that I have extended the deadline for the submission of bids to purchase the assets of the resolved companies by a further two weeks from the initial deadline of 27 July 2020 to close of business on Friday, 14 August 2020,” the Receiver said in the statement.

As a result of the coronavirus pandemic, the Receiver says all interested bidders are expected to visit the official website portal of the Receiver; to access photographs and other relevant information of assets on offer for sale.

“Please note that the pictures are grouped according to the current location of the assets, i.e. Kumasi, Takoradi and Accra,” the statement explained.

The statement futher adds; “prospective buyers should submit their bids in a signed and dated formal letter, scanned and attached in an email addressed to any of the following email addresses, clearly indicating the item(s) or asset(s) they are interested in and the bid amount for each asset: or,”.

As part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, the Bank of Ghana (BoG) embarked on a clean-up exercise in August 2017 to resolve insolvent financial institutions whose continued existence posed risks to the interest of depositors.

The clean-up saw the revocation of licenses of 9 universal banks, 347 microfinance companies, 39 micro credit companies or money lenders, 15 savings and loans companies, 8 finance house companies, and two non-bank financial institutions.

Read the Receiver's full statement below: