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September 16, 2018 | Business & Finance

Collapse Of Banks Costs Taxpayers GHC12.7 Billion

Abu Mubarik - pulse.com.gh
Collapse Of Banks Costs Taxpayers GHC12.7 Billion

The collapsed of seven local banks has cost taxpayers GHC12.7 billion, President Nana Akufo-Addo says, hailing the Bank of Ghana's interventions to protect depositors funds.

Speaking at the 80th anniversary durbar of the Presbyterian Boys' Senior Secondary School, Legon, he also revealed that the Finance Ministry has had to issue bonds to the tune of some GHS8 billion in favour of GCB Bank and the new Consolidate Bank Ghana Limited.

In 2017, two banks- UT Bank and Capital Bank, were liquidated by the Bank of Ghana and put under GCB management.

On August 1, 2018, the Bank of Ghana revoked the licenses of 5 struggling banks and merged them into one and named it Consolidated Bank Ghana limited.

'To protect the deposits of the seven defunct banks, the government, through the Ministry of Finance has had to issue bonds to the tune of some GHS8 billion in favour of GCB Bank and the new Consolidate Bank Ghana Limited - the banks that have taken over the operations of the seven failed banks,'" said president Akufo-Addo.

'This is in addition to liquidity support of some GHS4.7 billion that had been provided by the Bank of Ghana to these banks over a period before their closure."

'In fact, GHS12.7 billion of public funds has been injected into these seven banks following their malfunction. Depositors' savings, however, have been safeguarded; job losses have been minimised and a strong set of indigenous banks, is being born', the president asserted.

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