Speaking to Graphiconline.com, the Governor of the Bank of Ghana, Dr Ernest Addison the liabilities and finances of these distressed savings and loans are estimated at GH¢7 billion.

“We have done our analysis and the estimate of the clean-up of the sector is about GH¢7 billion, which we have to find to complete the process.

“The engagement will ensure that the necessary funds can be raised on the part of the government to cushion depositors of these institutions,” Dr Addison said.

READ ALSO: Ghanaians criticise Nana Addo over Notre Dame condolence tweet

The clean up exercise of the savings and loans companies is expected to begin before the end of 2019.

According to Graphic Business, it is unclear which module the central bank will adopt: either a purchase and assumption agreement, by which strong savings and loans companies will take up selected assets and liabilities of the insolvent ones, or consolidation of all the insolvent ones into a new savings and loans entity.

Dr. Addison, however, noted that the module to adopt was part of discussion ongoing between the central bank and the finance ministry.

Ghana government in 2018 spent about GH¢12 billion to liquidate seven struggling banks.

Ghana currently has about 37 savings and loans companies and 22 finance houses, with almost a quarter of them in distress.

READ ALSO: Gov’t to privatise management of Kotoka International Airport

But only eight out of the 37 companies operating in the savings and loans sector have paid-up capital above the minimum amount of GH¢15 million.