The collapsed banks were in a zombie state and fatally insolvent - Ofori-Atta
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The collapsed banks were in a zombie state and fatally insolvent - Ofori-Atta

- The Finance Minister, Ken Ofori-Atta, shed light on the reasons that informed the decision to collapse some banks in Ghana

- He stated that the banks were in a zombie-like state and totally insolvent by the time the present government assumed office

- Ofori-Atta added that the government did not wilfully conspire with the Bank of Ghana to dissolve the banks

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The Minister of Finance, Ken Ofori-Atta, has given reasons behind the decision by the government to clean up the banking sector.

According to him, the move was a necessary one and it would lead to the strengthening of Ghana’s economy.

The minister stated that the decision led to the saving of locked-up funds in the failed banks.

The collapsed banks were in a zombie state and fatally insolvent - Ofori-Atta

Ken Ofori-Atta, Minister of Finance Source: The Ghana Report
Source: UGC

READ ALSO: COVID-19 will lead to economic challenges in Ghana and beyond - Finance Minister

Presenting the mid-year budget review in Parliament on Thursday, July 24, 2020, he added that the act has saved Ghana over GHc21 billion in taxpayers’ funds.

A report by adomonline.com quotes him as saying that inasmuch as the government was desperate to fix the broken economy, it did not conspire with the Bank of Ghana (BoG) to cause the downfall of Ghanaian banks.

Ofori-Atta went on to say the government did not have the time, the thought, the energy, or the luxury to facilitate the downfall of the banks.

He further indicated that the banks were already in a zombie state and fatally insolvent by the time the present government assumed office.

To set the records straight, the minister noted that the decision was reached as the government wished to save the funds of the clients of the failed banks.

Meanwhile, veteran Ghanaian journalist, Abdul-Malik Kweku Baako, has faulted the BoG for collapsing three Ghanaian banks.

In his opinion, the collapse of uniBank, GN Bank, and Heritage Bank was not right.

According to him, it is unfortunate the banks are no more.

He noted that Adongo is “a young man and I appreciated him and I want to see a young man like him who does great things; It was painful his bank went down.”

READ ALSO: COVID-19: Government to pay temporal salaries to sacked workers

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Source: Yen

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