Mobile Money operators: Central Bank extends deadline for minimum capital to Dec. 2020
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Mobile Money operators: Central Bank extends deadline for minimum capital to Dec. 2020

- The Bank of Ghana has given mobile money operators until December 2020 to meet the minimum capital requirements

- It added that such businesses have the option of using 50% of all verifiable assets to cover 50% of the minimum capital requirement

- Only financial technology firms are eligible for such packages, the Central Bank announced

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The Bank of Ghana has announced an extension of the deadline for meeting the minimum capital requirement by mobile money operators.

As a result, the mobile money operators have until December 2020 to settle the GHC20 million required by the central bank.

According to the head of the Payment Systems Department at the central bank, Dr Settor Amediku, the Bank of Ghana has endorsed the conversion of 50% of all verifiable assets to cover 50% of the minimum capital requirement.

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This, he explained, is a measure adopted only for financial technology (fintech) companies.

Per a report by Business Insider, the Bank of Ghana, in announcing the directive, explained that the measure is in line with the need for a legak and regulatory framework for an organized payment system.

It added that in reaching the decision, it considered the size, nature and characteristics of each financial technology company.

In other news, fresh reports coming in show that Ghana is likely to lose an estimated GHC4,149,467,250 in the wake of falling oil prices on the world market.

YEN.com.gh understands that this represents about half of Ghana’s projected oil revenue for the year 2020.

The situation would become a reality if oil prices continue to decline or stay at around $30 a barrel for the rest of the year.

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Per a report by myjoyonline.com, the situation is likely to place pressure on the government to immediately review its budget before July 2020.

In the 2020 budget presented in Parliament, the government estimated that it could receive about $1.5 billion at the benchmark price of $62.6 per barrel for its oil revenue.

The situation, however, presents itself as a challenge in the wake of the spread of the coronavirus on the demand for oil.

It is also as a result of the sudden price challenge between Saudi Arabia and Russia, leading to the pricing of oil a about $30 a barrel.

A research by Goldman Sachs shows that the Organization of Petroleum Exporting Countries (OPEC) and Russia are currently engaged in a tussle that could lead to a fall in oil prices.

Saudi Arabia recently reduced its official selling prices as it plans to increase output above 10 million barrels a day.

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Source: Yen

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