Customers of collapsed microfinance businesses give gov’t 2 weeks to release locked up cash
- Customers of collapsed micro-finance institutions have given the government up till Tuesday, March 24, 2020 to release their cash
- According to them, failure to do so would result in a demonstration by the members
- They added that the government has refused to implement measures to ensure the release of their cash after the banking sector cleanup
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The Coalition of Aggrieved Customers have called on the government to ensure that their deposits are released in a maximum of two weeks.
According to them, they would have no option than to embark on a demonstration if their demands are not met.
The group indicated that the government has refused to implement measures to ensure the payment of deposits to their customers following the financial sector clean-up.
Source: UGC
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In an address to the media, the coalition’s public relations officer, Charles Nyame, stated that the government has till Tuesday, March 24, 2020, to settle all outstanding payments.
In 2019, the Securities and Exchange Commission (SEC), revoked the licenses of 53 fund management companies.
This, per a citibusinessnews.com report, was as a result of a series of regulatory breaches discovered with regard to their operations.
Information available shows that the companies affected by SEC's decision were managing over GHC8 billion in assets.
It has been established that some of the collapsed fund management companies had locked up funds in savings and loans, as well as other financial institutions that were shut down by the Bank of Ghana (BoG).
As a result, they were therefore not in the position to meet demands for funds by investors.
In other news, plans are in place to get the road network repaired in Kenya as it issues its first-ever road bond worth $1.5 billion.
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According to the Infrastructure Principal Secretary Paul Maringa, the bond would be issued by June 2020 through the Treasury. He added that a part of the funds would be diverted towards the settlement of pending bills.
Maringa went on to say that the Kenya Roads Board has received authorization from the government to borrow funds from commercial lenders.
The funds, per a Business Insider report, would be leveraged by annual Parliamentary appropriations under the development budget.
He also noted that it would take 10 years to pay off the current outstanding commitments, which are currently estimated at US $6.4 billion in case no new projects are introduced.
Per the current plan, the balance would be used to finance works from July 1 to September 30, 2020, which would be followed by the issuance of a second bond.
The Treasury, it has been determined, would oversee the timings for the flotation and structure of the second bond.
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Source: YEN.com.gh
