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17.08.2019 Business & Finance

GHASALC Says Over 2,000 Staff Of Collapsed Savings & Loans Companies Will Lose Their Jobs

By Staff Writer
GHASALC Says Over 2,000 Staff Of Collapsed Savings & Loans Companies Will Lose Their Jobs
AUG 17, 2019 BUSINESS & FINANCE

Over 2,000 employees of the 15 Savings and Loans Companies whose licenses were revoked by the Bank of Ghana (BoG) on Friday are said to lose their jobs.

Executive Secretary of the Ghana Association of Savings and Loans Companies (GHASALC), Tweneboah Kodua Boakye made this known on Eyewitness News.

“We are looking at employees in excess of 2,000. That is for the 15 savings and loans companies on the list,” he explained.

Mr. Aboagye further pointed out that the revocation was expected since a number of institutions were battling with challenges.

“We have heard the news, we have seen the publication. We have been expecting this because there were a number of institutions that were suffering as a result of these uncertainties in the market.”

He was however quick to add that the 24 remaining savings and loans companies that were not affected by the Bank of Ghana's action must be supported to succeed.

“There was an unfounded list going round but now the central bank has settled this. From the BoG list, it means that there are 24 savings and loans companies left in the market to do business. So we want to encourage the public to remain calm. This has happened and we were all expecting it. Let us support the companies that are left. Let's support the system and the receivership process. If we are able to do this, I am very confident that the sector will be stronger,” he added.

The Bank of Ghana on Friday, August 16 announced that the licenses of 15 Savings and Loans Companies and eight Finance Houses had been revoked after they were found to be insolvent.

Among the 15 are some well-known institutions that hitherto, appeared to be operating normally.

For a few others, their collapse was not surprising as for several months their customers were unable to retrieve their savings.

Key among those whose licenses were revoked was GN Savings and Loans company which several months earlier, known as GN Bank, opted to be downgraded in the Bank of Ghana's clean-up of the universal banking sub-sector.

—citinewsroom

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