BoG to appeal restoration of UniCredit’s licence ruling

An Appeals Court in Accra on Thursday, July 7, presided over by three judges unanimously ruled in favour of shareholders of uniCredit Ghana Limited because the court opined that the regulator (BoG) erred and did not go through the right procedure in taking the action.

But according to Graphic.com.gh, the Central Bank has instructed its lawyers to appeal the decision of the Appeal Court.

The BoG noted that the ruling by the Court will not promote financial stability.

The Bank also added that despite the Appeals Court ruling, the Receiver of UniCredit Ghana Limited will continue to perform his statutory functions while appeal processes are filed.

The Bank of Ghana on August 16, 2019, revoked the licences of 23 insolvent savings and loans companies and finance house companies including GN Savings and Loans belonging to businessman Dr Papa Kwesi Nduom and UniCredit belonging to Dr Kwabena Duffuor’s HODA Group.

The Central Bank's action was taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.

The BoG appointed Mr. Eric Nipah as the Receiver for the specified institutions in line with section 123 (2) of Act 930.