Collapse of savings and loans companies: Payments to begin within 7 days

The Receiver of the 23 collapsed savings and loans companies and finance house companies, Eric Nana Nipah, says he will commence payments to depositors of the affected companies within 7 days.

According to him, the payments would be made based on funds available from the government.

“I’m working towards being in the position to commence payment within seven days and that relates to funding to be received from government,” he said in a radio interview on Accra-based Citi FM Monday morning - August 19, 2018.

Mr Nipah also noted that he was yet to meet with officials of the Bank of Ghana (BoG) to conclude on the modalities for payment of funds.

“I have no idea of the money involved and how much government was going to make available [but] I’m very hopeful that in the coming days all these will be sorted out and explained to me,” he added.

“I have meetings with my principals, BoG today, tomorrow and these are the agenda items that will be discussed and concluded; as to how much money will be made available by government and all the terms and conditions and timing of release,” he said.

Following the revocation of the licenses of the 23 savings and loans companies and finance house companies last Friday [August 16, 2019], the Bank of Ghana (BoG) gave the assurance that funds are available to pay depositors of the affected companies.

The BoG in a statement said “in line with the government’s commitment to protect depositors’ funds, the Government has made funds available to enable the Receiver pay depositors after their claims are validated. The Receiver will in due course make an announcement with regards to when and where payments will be made.” 

• Read also
• 'Funds available to pay customers of collapsed 23 savings and loans, finance houses'
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• BoG revokes licences of GN Savings, Ideal Finance, First Allied and 20 others

According to the BoG, the revocation of the licences of the institutions had become necessary because they were insolvent even after a reasonable period within which the Bank of Ghana had engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

The affected companies are:

1. Accent Financial Services Ltd

2. Adom Savings and Loans Ltd

3. AllTime Finance Ltd

4. Alpha Capital Savings and Loans Ltd

5. ASN Financial Services Ltd

6. CDH Savings and Loans Ltd

7. Commerz Savings and Loans Ltd

8. Crest Finance House Ltd

9. Dream Finance Company Ltd

10. Express Savings and Loans Company Ltd

11. First African Savings & Loans Company Ltd

12. First Allied Savings and Loans Co. Ltd

13. First Ghana Savings and Loans Co. Ltd

14. FirstTrust Savings and Loans Ltd

15. Global Access Savings and Loans Company Ltd

16. GN Savings and Loans Ltd

17. Ideal Finance Ltd. Finance House

18. IFS Financial Services Ltd

19. Legacy Capital Savings and Loans Ltd

20. Midland Savings and Loans Company Ltd

21. Sterling Financial Services Ltd

22. Unicredit Savings and Loans Ltd

23. Women’s World Banking Savings and Loans Co. Ltd