Depositors of defunct savings and loans and microfinance institutions will start receiving their locked up funds from today, Monday, February 24, 2020.
This includes customers of Diamond Microfinance Limited (DKM) which collapsed in 2015 under the John Mahama administration.
This was revealed by President Akufo-Addo when he delivered the State of the Nation address in parliament on Thurusday.
President Akufo-Addo in his address said an amount of GH¢5 Billion has been set aside to cater for depositors who have their funds locked up in the now defunct microfinance companies.
“I would like to repeat that all depositors of the savings and loans and microfinance institutions, including DKM which collapsed in 2015 will receive a 100% of their deposits too once the validation exercise is concluded.
“I’m informed that the receiver of the savings and loans and microfinance Institutions will begin on Monday the 24th of February, making payments to their customers these monies totalling 5bn cedis being an addition to the 13bn cedis being paid to the customers of the failed banks,” President Akufo-Addo said.
The President indicated that his government has made notable strides to salvage the rather ailing financial situation it inherited from the erstwhile NDC government.
Although the exercise[cleanup of banking sector] which was conducted by the Central bank has resulted in the collapse and consolidation of a number of banks, microfinance institutions and savings and loans companies, the outcome of the exercise has left in its trail a relatively stronger financial sector, one the country can be proud of.
“We inherited a collapsing financial sector with its lots of failing banks and considerable agony to many people. The government is having to capture GH¢13 Billion to pay the 4.6 million affected customers of the banks. This is money that we can ill afford and which would have gone to fund the many things that our communities are crying for.
“Properly utilized, GH¢13 Billion would work wonders with our perennial infrastructure deficit. But, we did think long and hard about paying all the customers of the failed banks and we believe we made the right decision,” he said.