Moneylenders beseech Bank of Ghana to reduce GH¢2 million minimum capital requirement or risk collapses

March 2, 2020 3:30 PM

The Ghana Micro Credit Association (GMCA) has petitioned the Bank of Ghana (BoG) to review the revised GH¢2 million minimum capital requirements it is expected to pay.

Ghana Cedi

According to the association, if not reviewed the new minimum requirement will result in many moneylenders, particularly those in the remote areas, being folded up by the Regulator.

The Board Chairman for GMCA, Wilberforce Ofori said this in an interview with Accra based Joy News.

He noted that “Micro Credit institutions are helping a lot of people in one way or the other especially in the remote areas. That is why we are saying that for those in the remote areas they do not need a minimum capital requirement of Gh¢2 million.”

Adding that “So we are pleading with them [BoG] that they should look at the figures and consider it.”

The BoG in August 2019 announced a GH¢2 million new capital requirements for microfinance companies to meet by February 28, 2020, failure to it will attract sanctions.

However, Mr Ofori observed that the new minimum requirement is a significant increase from the earlier announced GH¢300,000.00 minimum capital. He added that it will be difficult for moneylenders in Ghana to meet the revised minimum amount.

“Initially the minimum was GH¢60,000, then it came to GH¢100,000, then later GH¢300,000 and right from there they are requesting for GH¢2 million. That is why we are saying that they should consider somebody at the village somewhere, who wants to support community members because they cannot raise the GH¢2 million,” he added.