BoG likely to close down the 4 unlicensed Microfinance Institutions.

The Central Bank says it might be compelled to halt the operations of the four microfinance institutions operating without licenses.

The Central Bank yesterday warned the public against dealing with the four companies. They include MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited and Swift Financial Services.

Some have suggested tougher actions by the Central bank especially following recent-agitations by customers of some defunct companies for refund of their deposits.

Head of Banking Supervision at the Central Bank, Franklyn Belnye however tells Joy Business an immediate close down of such unlicensed institutions is not that simple to do.

“We are saying that a company that started operations after the rules and guidelines were introduced should not take deposits from the public or engage with the public until at least a provisional approval is acquired".

The fact is we can't be everywhere at every time and so the public must help us by refraining from dealing with un authorized institutions and also inform the central bank if they come across such institutions so we can take action on them. For those that we have warned the public against, the next thing is to take steps to get them out of operations. We are looking at how best we can deal with them” he noted.

Story by Emmanuel Agyei / Bernard Nasara Saibu