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Finance Minister Ken Ofori Atta

Government to bailout “distressed” microfinance companies

Government has hinted of a bailout targeted at “distressed” Microfinance and Savings and Loans Institutions, Starrfm.com.gh can confirm.

The bailout is necessitated by the inability of microfinance and savings and loans institutions to wind up of their fixed term investments in line with a June 2018 directive by the Commission.

In a letter sighted by starrfm.com.gh and signed by Rev. Daniel Ogbarmey Tetteh, Director General of SEC read in part that: “The Ministry of Finance (MoF) and the Bank of Ghana (BOG) have given indications of a bailout plan targeted at distressed Microfinance and Savings and Loans Institutions.

“In view of this, the Commission (SEC) has started engaging with the Ministry to ensure that our licensees exposed to such distressed deposit taking institutions will be adequately provided for as a step to ease the liquidity crunch/situation for affected licensees.”

The bailout is expected to keep at least 289 microfinance companies in business.

 

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