BOG to sell off DKM debt

quist

May 18, 2016 4:32 PM

He revealed plans of implementing a buy-back scheme with a commercial bank who will buy DKM’s debt to customers and redeem the debt owed them.

Dr. Abdul Nashiru Issahaku, Governor of the Bank of Ghana says the Central Bank has made major advancements towards paying back the monies of the customers of DKM Microfinance.

READ MORE: Dr. Abdul Issahaku to deliver first monetary policy address on May 16

"If a commercial bank is interested in buying back the debt, it can then be making the payment whiles we wait for the audit process to the completed," he added.

Addressing journalists at the monetary policy press conference in Accra, Dr. Nashiru Issahaku maintained that, the Bank of Ghana through the Registrar General has appointed Price WaterHouse Coopers to audit the accounts of DKM.

The Governor, however, indicated that BoG is treading cautiously to ensure that it does not send wrong signals to other companies in the industry and also the regulator will not be directly involved in the payment.

Meanwhile, some banking experts have kicked against this bailout strategy of the central bank.

According to them, it will set a negative precedence to stakeholders in the microfinance industry.

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