Financial Sector Clean-up: Customers to receive deposits in 7 days – Receiver

Receiver for the 23 savings and loans and other financial institutions closed down by the Central Bank on Friday has assured that customers will have access to their deposits in 7 days time.

According to him, the payments would be made based on funds made available by government.

In an interview monitored by The Ghana Report, Nana Nipah stressed that measures have been put in place to ensure all depositors receive their funds within 7 days.

He noted “I’m working towards being in the position to commence payment within seven days and that relates to funding to be received from government.”

He suggested that payment would be done in “rounds“ or tranches. “Just like what happened in the case of the microfinance companies, a cap of GHc10, 000 was set to try and manage the funds made available to us, however, once additional funds are released the necessary payments would be made to these customers.”

Nana Nipah further said he is working with the Bank of Ghana (BoG) to conclude the modalities for payments of funds and how much would be allocated to paying depositors.

“I have no idea of the money involved and how much government was going to make available [but] I’m very hopeful that in the coming days all these will be sorted out and explained to me,” he indicated.

Following the revocation of the licenses of the 23 savings and loans companies and finance house companies last Friday [August 16, 2019], the Bank of Ghana (BoG) gave the assurance that provision had been made to cater for depositors funds available to pay depositors of the affected companies.

The BoG in a statement said “in line with the government’s commitment to protect depositors’ funds, the Government has made funds available to enable the Receiver pay depositors after their claims are validated. The Receiver will in due course make an announcement with regards to when and where payments will be made.”

The statement goes on to add that the Receiver will also indicate documents required from depositors to facilitate the validation of claims and orderly payment of validated deposits.

Other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions.

Nana Nipah was appointed by the Bank of Ghana as a Receiver for the purpose of winding down the affairs of the collapsed Savings and Loans and Finance Houses.