ADVERTISEMENT
Here’s how much the collapse of 7 banks cost gov’t
The Finance Minister, Ken Ofori Atta, said that through government’s intervention in August this year, deposits were saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017.
We have cleared GHS 6 billion inherited from Mahama - Ofori-Atta
The 7 banks are unibank, Beige Bank, Sovereign Bank, Construction Bank, Royal Bank, Capital Bank, UT Bank.
Mr Ofori Atta said this when he presented the 2019 budget statement to Parliament on Thursday (November 15, 2018).
He stated that through government’s intervention in August this year, GH¢11 billion deposits were saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017.
ADVERTISEMENT
READ ALSO: Budget 2019: Prioritise job creation, poverty reduction – GN ResearchBudget 2019: Prioritise job creation, poverty reduction – GN Research
“Mr. Speaker, since the assumption of office by the current administration of the Bank of Ghana, bold measures have been taken to restore the health and resilience of the banking sector and to clamp down on unlicensed deposit-taking financial houses. In addition to the two insolvent banks that were closed last year by the Bank of Ghana, five more were closed in August this year for insolvency and other infractions of the law.”
“Rescuing the situation regarding these seven banks has, so far, cost some GH¢9.9 billion in monies that Government had not budgeted for and could have surely been put in good use to fix our numerous infrastructural needs, such as housing, roads, bridges, etc."
“The Government has continued to provide assurances to depositors and customers of licensed banks and specialised deposit-taking institutions, through demonstrable actions, that their deposits are safe. Indeed, following the creation of the Consolidated Bank Ghana Limited (a wholly owned Government of Ghana and licensed by the Bank of Ghana as a universal bank), the government capitalised it with GH¢450 million. In addition, Government had to issue a bond with a face value of GH¢7.6 billion to cover the gap, between the deposit liabilities and the remaining good assets of the failed banks. This singular action of government has reposed confidence in the banking system because it will ensure that no deposit will be lost, and customers will continue to access their deposits without difficulty.
ADVERTISEMENT
“Through Government’s intervention in August this year, deposits of some GH¢11.0 billion have been saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017. The Government’s action has also created a strong indigenous Ghanaian bank in place of the five failed banks.”
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
Truck driver arrested for allegedly causing train accident on Tema-Mpakadan railway line
Kia driver who caused accident involving Ghana’s new train reports himself to Police
No passenger injured in accident involving Ghana’s newly imported train – Railways Minister
NAGRAT gives govt one-week deadline to address unpaid pensions affecting 700,000 workers
Inside story of how Ghana’s new train got involved in accident on a test run
She sent naked photos to Dubai lover while I battled kidney disease - Erico speaks on divorce
How did young politicians get so rich in just 5 to 7 years - Franklin Cudjoe asks
Artificial Intelligence will affect around 40% of the global workforce — IMF