Parliament approves GHC2 billion package for 5 banks

Parliament approves GHC2 billion package for 5 banks

On Thursday, March 14, 2019, Parliament approved the issuance of a Sovereign Guarantee of up to GH₵2 billion in favour of Ghana Amalgamated Trust (GAT) Limited.

GAT is a Special Purpose Vehicle (SPV) backed by the government, which was incorporated in December 2018 to raise up to GH¢2 billion and invest in five indigenous banks.

Per a report by Citinewsroom.com, the aim is to rescue the five indigenous commercial banks that failed to meet the Bank of Ghana’s minimum capital requirement of GH¢400 million.

A man wearing spectacles

Prof. Aaron Michael Ocquaye, speaker of Parliament Source: Ghananewsagency.org
Source: UGC

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The beneficiary banks are the state-owned ADB Bank and National Investment Bank (NIB). The rest are Universal Merchant Bank (UMB), Prudential Bank and OmniBank, which is merging with Sahel Sahara Bank.

Already, GAT has appointed Albert Essien, formerly of Ecobank and Eric Nana Otoo, formerly of Goldman Sachs, Mckinsey and Duet as its board chairman and managing director respectively.

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Source: Yen.com.gh

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