All depositors of bankrupt microfinance companies will receive their full payment in cash starting today.

General news for Wednesday, September 16, 2020

Source: 3 News

2020-09-16

Click to read all about the coronavirus →

The government has said that, in line with its commitment to protect depositors’ funds and shore up public confidence in the financial system, it has made available to the Receiver of failed Microfinance Companies, as well as to the Official Liquidator of Companies Microcredit officially. Settlement of a combination of cash and commercial paper for a total of approximately GH ¢ 6.49 billion to fully settle valid depositor claims.

This was contained in a press release published on Tuesday, September 15.

“As the Official Trustee / Liquidator brings the processing and payment of valid depositor claims to closure, a total amount of approximately GHS6.07 billion has been paid to some depositors of these resolved companies, leaving an amount of approx. . GHS402million to be paid to remaining depositors, to fully settle all valid depositor claims in the resolution process. It should be noted that these claims include previously validated claims evaluated by the Receiver / Official Liquidator as Late Filing claims due to the fact that they were filed after the extended deadline for filing depositor claims in the resolution process.

“Of the total amount of approximately 6.49 billion GHS required to fully settle all valid claims from depositors in the resolution process, approximately 3.56 billion of these claims in value representing approximately 55% of total claims payable are being settled with the Government of Ghana. Interest-bearing commercial paper (“Bond”), with the remainder approx. 45% of the value of the claims to be paid, amounting to approx. 2.93 trillion GHS in cash settlement.

“The Depositor Payment Scheme established by the Official Receiver / Liquidator to fully administer and settle all valid depositor claims in the resolution process has been highly successful; however, an area of ​​concern for most of the affected depositors is with the characteristics of the Commercial Paper used to partially settle the debt of these companies resolved with those depositors whose claims were not completely extinguished by paying cash to them. These depositors have indicated that the characteristics of the Bond, by not accruing interest and having a term of five years, do not make the Bond commercially attractive, which generates a significant loss in the value of their claims.

“Sensitive to these concerns and in order to provide additional liquidity to the financial sector, the Government has made available to the Receiver / Official Liquidator additional cash for an approximate amount of GHS3.56 billion, equivalent to the total value of the bond component of the necessary financing to fully satisfy the indebtedness of the resolved entities with their depositing bodies. This additional cash of approx. 3.56 billion GHS will replace the Commercial Paper that has been issued by the Government in favor of the affected depositors of these companies in the resolution ”, says the statement.

Below is the full statement:

IN THE MATTER OF THE LAW ON BANKS AND SPECIALIZED DEPOSIT INSTITUTIONS, 2016 (LAW 930)

AND

REGARDING RECEPTIONS FROM 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS AND LOAN AND HOME FINANCE COMPANIES

AND

NOTICE OF CONVERSION OF COMMERCIAL PAPER WITHOUT INTEREST ENDORSED BY THE GOVERNMENT (“BONUSES”) INTO CASH WITHOUT DISCOUNT REGARDING PAYMENTS TO AFFECTED DEPOSITORS OF RESOLVED MICROFINANCE, AND PROCEDURE FOR SAVINGS AND LOANS RECEIVED VALUES AND COMPANIES HAVE RECOVERED VALUES RECOVERED VALUES AND COMPANIES

In line with the Government’s commitment to protect depositors’ funds and strengthen public confidence in the financial system, the Government made available to the Trustee of the companies previously resolved, as well as to the Official Liquidator of the Microcredit Companies in liquidation official, a combination of cash and commercial paper totaling approximately GHS6.49 billion to fully settle valid claims of depositors in these institutions.

As the official Receiver / Liquidator closes the processing and payment of valid depositor claims, a total amount of approximately GHS6.07 billion has been paid to some depositors of these resolved companies, leaving an amount of approx. GHS402million to be paid to remaining depositors, to fully settle all valid depositor claims in the resolution process. It should be noted that these claims include previously validated claims evaluated by the Receiver / Official Liquidator as Late Filing claims due to the fact that they were filed after the extended deadline for filing depositor claims in the resolution process.

Of the total amount of approximately 6.49 billion GHS required to fully settle all valid claims of depositors in the resolution process, about 3.56 billion of these claims in value representing approximately 55% of the Total claims payable are being settled with the Government of Ghana without interest. with commercial paper (“Bond”), with the rest of approx. 45% of the value of the claims to be paid, amounting to approx. 2.93 trillion GHS in cash settlement.

The Depositor Payment Scheme established by the Official Receiver / Liquidator to fully administer and settle all valid depositor claims in the resolution process has been highly successful; however, an area of ​​concern for most of the affected depositors is with the characteristics of the Commercial Paper used to partially settle the debt of these companies resolved with those depositors whose claims were not fully extinguished by paying them in cash. These depositors have indicated that the characteristics of the Bond, by not accruing interest and having a term of five years, do not make the Bond commercially attractive, which generates a significant loss in the value of their claims.

Sensitive to these concerns and in order to provide additional liquidity to the financial sector, the Government has made available to the Receiver / Official Liquidator additional cash for an approximate amount of GHS3.56 billion, equivalent to the total value of the Bond component of the financing required to satisfy the indebtedness of the resolved entities with their depositing bodies. This additional cash of approx. 3.56 billion GHS will replace the Commercial Paper that has been issued by the Government in favor of the affected depositors of these companies in resolution.

The implication of the above is that depositors who have received or owe Commercial Paper in partial satisfaction of their claims will now receive cash payments without discount for the Commercial Paper they have received or are owed. Please note that depositors who have already discounted all or part of their Commercial Paper will receive a full cash refund of the discount they suffered.

As a result of this new funding arrangement provided by the Government, all valid claims from depositors in the resolution exercise worth GHS6.49 billion are being fully settled in CASH.

It is hereby notified that, as of Wednesday September 16, 2020, affected depositors can contact any branch of Consolidated Bank Ghana Ltd (“CBG”), the paying bank to access their newly created cash accounts that originally they were designated as commercial paper accounts (bonds). in the bank, that is, CBG.

Interested parties can direct all questions or clarifications on the above to the following coordinates:

Tel: 024 243 9441/0550000966

Website: www.ghreceiverships.com

SGD

ERIC NANA NIPAH