25 C
Accra

Depositors of Failed Microfinance Companies to Receive Full Cash From Today

A press statement released on Tuesday, August 15, said the government has made available to the Receiver of the failed Micro Finance Companies as well as the Official Liquidator of the Micro Credit Companies in official liquidation a combination of cash and commercial paper totalling approximately GH¢6.49billion to fully settle the valid depositor claims.

The settlement will take effect from today, August 16, as contained in the press statement released on Tuesday by Eric Nana Nipah, the official receiver on behalf of the government.

The statement further said this is in line with the government’s commitment to protect depositors funds and to shore up public confidence in the financial system.

- Advertisement -

“As the Receiver/Official Liquidator brings the processing and payment of valid depositor claims to closure, a total amount of approx GHS6.07billion has been paid to some depositors of these resolved companies, leaving an amount of approx. GHS402million to be paid to the remaining depositors, to fully settle all valid depositor claims in the resolution process. It should be noted that these claims include validated claims previously assessed by the Receiver/Official Liquidator as Late Submission claims owing to the fact that they were submitted after the extended deadline for the submission of depositor claims in the resolution process, ” part of the statement said.

“Of the total amount of approximately GHS6.49billion required to fully settle all valid depositor claims in the resolution process, about GHS3.56billion of these claims in value representing approx 55% of total claims payable are being settled with Government of Ghana backed Non-Interest bearing Commercial Paper (“Bond”), with the remaining approx. 45% in value of claims payable, worth approx. GHS2.93billion being settled with Cash.

“The Depositor Payment Scheme set up by the Receiver/Official Liquidator to administer and fully settle all valid depositor claims in the resolution process has largely been successful; however an area of concern for most of the affected depositors is with the features of the Commercial Paper used to partially settle the indebtedness of these resolved companies to those depositors whose claims were not fully extinguished by the payment of cash to them. These depositors have indicated that the features of the Bond, being non-interest bearing and with a tenor of five years do not make the Bond commercially attractive, thus creating a significant loss in value of their claims to them.

MORE:  Don’t Run; Select Your Own Moderators – Mahama Dares Akufo-Addo for Debate

“Sensitive to these concerns and in order to provide additional liquidity to the financial sector, Government has made available to the Receiver/Official Liquidator additional cash amounting to approx.GHS3.56billion, equivalent to the total value of the Bond component of funding required to fully satisfy the indebtedness of the resolved entities to their body depositors. It is the expectation that this additional cash of approx. GHS3.56billion will replace the Commercial Paper which has been issued by Government in favour of affected depositors of these companies in resolution,” the statement added.

Below is the full statement:

IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT,2016(ACT 930)

AND

IN THE MATTER OF THE RECEIVERSHIPS OF 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS AND LOANS AND FINANCE HOUSE COMPANIES

AND

NOTICE OF CONVERSION OF GOVERNMENT BACKED NON INTEREST BEARING COMMERCIAL PAPER (“BONDS”) INTO CASH AT NO DISCOUNT IN RESPECT OF PAYMENTS TO AFFECTED DEPOSITORS OF RESOLVED MICROFINANCE, AND SAVINGS AND LOANS AND FINANCE HOUSE COMPANIES WHOSE CLAIMS HAVE BEEN VALIDATED IN THE RESOLUTION PROCESS

In line with Government’s commitment to protect depositors funds and to shore up public confidence in the financial system, Government made available to the Receiver of the above resolved companies, as well as the Official Liquidator of the Micro Credit Companies in official liquidation, a combination of cash and Commercial Paper totalling approximately GHS6.49billion to fully settle the valid depositor claims on these institutions.

As the Receiver/Official Liquidator brings the processing and payment of valid depositor claims to closure, a total amount of approx GHS6.07billion has been paid to some depositors of these resolved companies, leaving an amount of approx. GHS402million to be paid to the remaining depositors, to fully settle all valid depositor claims in the resolution process. It should be noted that these claims include validated claims previously assessed by the Receiver/Official Liquidator as Late Submission claims owing to the fact that they were submitted after the extended deadline for the submission of depositor claims in the resolution process.

MORE:  Bawumia was not Officially Informed of the Death of Wa Imam - Spokesperson

Of the total amount of approximately GHS6.49billion required to fully settle all valid depositor claims in the resolution process, about GHS3.56billion of these claims in value representing approx 55% of total claims payable are being settled with Government of Ghana backed Non-Interest bearing Commercial Paper (“Bond”), with the remaining approx. 45% in value of claims payable, worth approx. GHS2.93billion being settled with Cash.

MORE:  Akufo-Addo Visits 1D1F Factory in Akuapem North

The Depositor Payment Scheme set up by the Receiver/Official Liquidator to administer and fully settle all valid depositor claims in the resolution process has largely been successful; however an area of concern for most of the affected depositors is with the features of the Commercial Paper used to partially settle the indebtedness of these resolved companies to those depositors whose claims were not fully extinguished by the payment of cash to them. These depositors have indicated that the features of the Bond, being non-interest bearing and with a tenor of five years do not make the Bond commercially attractive, thus creating a significant loss in value of their claims to them.

Sensitive to these concerns and in order to provide additional liquidity to the financial sector, Government has made available to the Receiver/Official Liquidator additional cash amounting to approx.GHS3.56billion, equivalent to the total value of the Bond component of funding required to fully satisfy the indebtedness of the resolved entities to their body depositors. It is the expectation that this additional cash of approx. GHS3.56billion will replace the Commercial Paper which has been issued by Government in favour of affected depositors of these companies in resolution.

The implication of the above is that depositors who have either received or are due Commercial Paper in partial satisfaction of their claims will now receive CASH payments at no discount for the Commercial Paper they have either received or is due to them. Please note that depositors who have already discounted all or part of their Commercial Paper will receive a full refund in cash of the discount they suffered.

As a result of this new funding arrangement provided by Government, all valid depositor claims in the resolution exercise worth GHS6.49billion in value are being fully settled in CASH.

Notice is hereby given that with effect from Wednesday 16 September 2020, affected depositors may contact any branch of Consolidated Bank Ghana Ltd (“CBG”) the paying bank to access their newly created Cash accounts which were originally designated as Commercial Paper (Bond) accounts at the bank ie CBG.

Stakeholders may direct all questions or clarifications on the above to the coordinates below:

Tel: 024 243 9441/ 0550000966

Website: www.ghreceiverships.com

SGD

ERIC NANA NIPAH

- Advertisement -

Want to submit a story or pitch?

You can submit articles for publication through our email (editor@theaccratimes.com) or on Whatsapp +233 203255940.

More Stories for you

Nigeria’s Ngozi Okonjo-Iweala in Good Position to Become WTO Chief

Nigeria's Ngozi Okonjo-Iweala is in a good position to become the first African to head the World Trade Organization. According to sources, the majority of...

Ghana Not Back to HIPC – Oppong Nkrumah

Minister of Information, Kojo Oppong Nkrumah, has debunked claims that Ghana has once again been ranked in the category of Highly Indebted Poor Countries...

Why Are You Protecting NAM 1? – Mahama Queries Akufo-Addo

Flagbearer of the National Democratic Congress (NDC) John Mahama says he will pursue the Chief Executive Officer for Menzgold Nana Appiah Mensah popularly known...

#EndSARS: Tinubu’s TVC Set on Fire

Staff of Television Continental, a private television station on Ikosi Road, Lagos, have cried for help as hoodlums have reportedly set the station on...

Kyei-Mensah-Bonsu Will Retain Suame Seat – Haruna Iddrisu

The Minority Leader and Member of Parliament for Tamale South, Mr. Haruna Iddrisu, has said his Majority counterpart, Osei Kyei-Mensah-Bonsu, will win the upcoming...

Naa Ashorkor Tests Positive for COVID-19

Radio and television personality, Naa Ashorkor Mensah-Doku has tested positive for Covid-19. She made the announcement on her social media pages on Monday, October 19. "After...

12 Cleared to Contest 2020 Elections

Twelve (12) presidential candidates have been cleared to contest the 2020 general elections. This implies that five of the 17 nominees who submitted their nomination...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

DON'T MISS

Why Are You Protecting NAM 1? – Mahama Queries Akufo-Addo

Flagbearer of the National Democratic Congress (NDC) John Mahama says he will pursue the Chief Executive Officer for Menzgold Nana Appiah Mensah popularly known...

Ghana Not Back to HIPC – Oppong Nkrumah

Minister of Information, Kojo Oppong Nkrumah, has debunked claims that Ghana has once again been ranked in the category of Highly Indebted Poor Countries...

Nigeria’s Ngozi Okonjo-Iweala in Good Position to Become WTO Chief

Nigeria's Ngozi Okonjo-Iweala is in a good position to become the first African to head the World Trade Organization. According to sources, the majority of...

Get more news from us

While you are here, please sign up to get more news from us.

OUR TOP PICKS FOR THE WEEK

Why Are You Protecting NAM 1? – Mahama Queries Akufo-Addo

Flagbearer of the National Democratic Congress (NDC) John Mahama says he will pursue the Chief Executive Officer for Menzgold Nana Appiah Mensah popularly known...

Ghana Not Back to HIPC – Oppong Nkrumah

Minister of Information, Kojo Oppong Nkrumah, has debunked claims that Ghana has once again been ranked in the category of Highly Indebted Poor Countries...