98% of depositors refunded in micro-finance sector claim repayment

Depositors’ whose funds are locked up in the microfinance space now have a higher probability of receiving their entire funds.  The Deputy Bank of Ghana Governor, Dr. Maxwell Opoku-Afari, indicated that the revision of the capped claims payment from GH¢10,000 to GH¢20,000 means about 98% of depositors who made claims would be paid. 

This was revealed in a ceremony to climax the 7th Rural Banking Week held in Takoradi, on the theme; ‘The role of Rural and Community Banks (RCBs) in financial inclusion.’

Regarding the payment of the claims he indicated that the Ministry of Finance, the Bank of Ghana (BOG) and the receiver have reached an understanding to find a way to unlock funds belonging to Rural Community Banks (RCB) deposited with Micro Financial Institutions (MFIs) adding that, “Discussion on modalities are ongoing and once concluded will be announced very soon.”

Reference was however made to the initial slow trend of validation due to poor records and documentations.  He however confirmed that the validation process has picked up significantly and a number of depositors have been paid.

In an earlier communication, the Receiver, Mr. Eric Nipa has hinted that persons who have funds locked up could receive payments before end of 2019. 

With respect to RCBs serving as a strong avenue for financial inclusion, He said, the BOG was working together with MOF and the Apex Bank to address the current challenges facing the rural and community banks.  The BOG would offer strict regulations and see to the recapitalization of the RCBs to enable them to be strong enough to perform their intermediation and financial inclusion role.  Depositor confidence is key in enrolling the financially excluded into the banking sector.