ADB to publish names and pictures of loan defaulters after 30 days grace period
The Agricultural Development Bank (ADB) has threatened to publish the names and pictures defaulters in the national dailies.
According to the bank, the publication of the defaulters’ list will be the beginning of a series of actions the bank intends to take to remind debtors of their debts.
In the publication in the Ghanaian Times newspaper, the bank says it will offer a grace period of 30 days starting from the date of the notice to allow defaulters to present their negotiated settlement.
“We are prepared to offer the last chance to any person willing to present for consideration a workable payment proposal that will result in a negotiated settlement to do so within the next 30 days of the date of this notice, ” the notice available to theghanareport.com indicated.
But the notice was quick to add that the bank will be left with no other option than to take drastic measures against any defaulters after the stipulated 30 days.
The ADB was among five indigenous banks that struggled to meet the Bank of Ghana GHc 400 million minimum capitalisation requirements.
They were put under the support of the newly created Ghana Amalgamated Trust Limited (GAT) and were able to meet the new capital requirement in September 2019.
The recapitalisation of the banks: ADB, OMNI/BSIC, National Investment Bank (NIB), Universal Merchant Bank (UMB), and Prudential Bank, comes nine months after the expiry of the deadline for all universal banks in the country to increase their minimum capital from GH¢120 million to GH¢400 million.
Interestingly, the ADB had announced in December 2018 that it had been able to meet the GH¢400 million minimum capital requirement of the Bank of Ghana (BoG).
The bank’s shareholders authorized the Board of Directors to raise a total of GH¢383 million in fresh and existing capital to enable the bank to meet the Central Bank’s minimum capital requirement.
It did not happen until the state intervened.