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Business News of Wednesday, 26 February 2020

Source: www.ghanaweb.com

We paid depositors GH¢200million on the first day - Receiver of collapsed MFI, S&L

Spokesperson, Philomena Kuzoe, Receiver of collapsed S&L and Microfinance companies has confirmed payment of over GH¢200 million to depositors on the 24th of February.

According to her, payment has been made to some social institutions including churches, hospitals, schools and welfare associations.

She added that payment will be made to both individual and welfare organisations till the end of March, urging depositors to remain claim and trust the process.

Speaking in an interview with Citi TV, Philomena Kuzoe said; “We started yesterday (24th February) even though it was late last night. We made sure we beat the deadline for 24th. So we started paying about GH¢200 million in cash to depositors. We have two major categories of depositors. I’m not talking about creditors, we have the individuals, individuals and Welfare organisations what we call the social institutions and the financial institutions. So yesterday we paid the social institutions which are made up of the churches, hospitals, school and the welfare association who have their claims on the defunct microfinance and saving and loans institutions. We are expecting to finish by the end of March, by the time we finish with this exercise which involves about 360,000 depositors we would only be left with 8,000 who will be doing cash and bonds.”

Government has released GH¢5 billon to settle all depositors of the defunct microfinance and savings & loans companies, starting from Monday, 24 February 2020.

Akufo-Addo reiterated that his government took the right decision with regard to the reforms undertaken in the financial services sector.

He however assured that “all depositors of savings and loans and microfinance institutions including DKM, which collapsed in 2015, will receive 100 percent of their deposits once the validation exercise is concluded”

The release of GHC5 billion increases the cost of servicing locked-up funds as a result of the financial services sector crisis, to GH¢18 billion.

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