CBG to announce modalities for cash and bond payments to depositors of defunct S&Ls, Microfinance firms

Consolidated Bank Ghana, CBG, has announced to the general public that it will publish the full modalities for payment of cash and bonds on behalf of the Receiver for all depositors of defunct microfinance and savings and loans companies.

According to the bank, it has established a mechanism for those depositors who wish to obtain cash ahead of the liquidation schedule to discount those expected cashflows with the bank at a very competitive rate.

In a statement released by the Bank on 6th April, 2020, its Managing Director, Mr Daniel Wilson Addo, said the bank is positioned to clarify how customers of the collapsed financial institutions could access their cash and bonds, following government’s decision to pay the affected customers.

“At the direction of the Receiver of the defunct MFI & S&Ls, the release said the bank has almost concluded paying affected customers of the defunct institutions the cash component of their validated investments. For customers whose deposits exceed the cash payment threshold as advised by the Receiver, a special account has been opened to hold the balance payable,” he added.ADVERTISEMENT

It will be recalled that Government has provided a combination of cash and bonds totalling Five Billion Ghana Cedis (GHS5,000,000,000.00) to pay depositors of the collapsed financial institutions.

But CBG further notes that, funds in excess of the cut-off for cash payment will be held in special holding accounts opened for the depositors, and paid in equal instalments every six months over a five year period after the initial payment is made in March 2021.

The Managing Director pledged the bank’s commitment to play its role professionally in its usual customer-centric approach to business in resolving all outstanding issues regarding payments.

He also reminded everyone of the need to observe the various safety protocols that have been advised to ensure containment of the COVID-19 virus.

GHS 787m paid to customers of defunct Microfinance, Savings & Loans – Gov’t

Last month, government announced that it had disbursed a total of 787 million cedis for the payment of locked up funds to customers of defunct collapsed Microfinance, Micro-credit and Savings and Loans companies.

According to the Minister of Finance, Ken Ofori-Atta, who revealed this, the amount is in fulfilment of President’s order that all affected customers be paid their monies in full.

Meanwhile, an outstanding amount of the five billion cedis allocated by government is expected to be issued in bonds to pay other claims due customers with investments beyond 70,000 cedis.