GHC 9.9 billion used to rescue the banking sector - Ofori Atta

GHC 9.9 billion used to rescue the banking sector - Ofori Atta

- An amount of GH¢9.9bn has been spent to clean up the banking sector

- According to the Minister of Finance, the money spent was not budgeted for

The Minister of Finance, Ken Ofori Atta, has revealed that the collapse of seven banks – unibank, Beige Bank, Sovereign Bank, Construction Bank, Royal Bank, Capital Bank, UT Bank – has cost the government an amount of GH¢9.9 billion.

He further revealed that the money that was spent to clean up the banking sector was not budgeted for.

He added that the money that were used to clean up the sector could have been put to good use to fix infrastructural needs , such as roads, bridges and housing.

GHC 9.9 billion used to rescue the banking sector - Ofori Atta
Minister of Finance, Ken Ofori Atta Source: supplied
Source: Depositphotos

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The Finance Minister made the comments Thursday when he delivered the 2019 Budget statement to Parliament.

According to him, through government’s intervention, in August this year, deposits of some GH¢11.0 billion have been saved.

He also added that about 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017.

READ ALSO: Budget 2019: Government to spend GHC73.4bn in 2019

He added that, following the creation of the Consolidated Bank Ghana Limited, 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.

Ofori- Atta explained that that action of government has reposed confidence in the banking system because it would ensure that no deposit would be lost, and customers will continue to access their deposits without difficulty.

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