People in Ghana who deliberately refuse to repay loans, even when they have the means to do so, could soon be banned from borrowing from any licensed bank or financial institution for up to five years.

According to new rules from the Bank of Ghana (BoG), all banks and other regulated lenders will be required to publish the names of such defaulters twice a year, on June 30 and December 31, in at least two national newspapers and on their official websites, using a format provided by the BoG.

The central bank says the move is aimed at tackling the growing problem of bad loans, which threaten the profitability and stability of the banking sector.

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All financial institutions have already been notified, and the BoG has released public guidelines explaining the policy.

A wilful defaulter is defined as a borrower who deliberately breaks loan agreements. This includes refusing to repay despite having the means using the loan for purposes other than those agreed upon or obtaining it through fake documents or false collateral.

Once the BoG approves a write-off of an unpaid loan, the borrower will be barred from taking another loan from any regulated bank for a period equal to twice the time between the write-off approval and the date the debt is finally settled.

If a person is listed as a wilful defaulter twice or more within a 10-year period, they will automatically face a five-year borrowing ban or longer if the calculated period exceeds five years.

DR/MA

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