The Bank of Ghana revoked the licenses of 347 microfinance companies in the country in May 2019. The step by Bank of Ghana affected about 4.6 million depositors of these financial institutions and employees of these institutions, who lost their jobs in the course.
However, the actions of the regulators helped saved depositors from losing huge sums of monies to these institutions had the action not been taken. Outstanding salaries and exit packages for former employees of the 347 inactive microfinance companies are set to be paid by the Receiver.
The development is explained as an action geared towards “alleviating the economic impact of the resolution exercise on former employees of the affected companies, particularly in these times of COVID.”
In a statement issued and signed by the Receiver, Mr Eric Nana Nipah emphasised that he will engage authorised representatives of the ex-staff of these inactive institutions to agree on appropriate procedure to effect payments of outstanding salaries and exit packages to the ex-staff.
“The Receiver will in the week commencing Monday, 13 July 2020 engage with the authorised representatives of the ex-staff to agree on modalities for the payment of outstanding salaries and exit packages to ex-staff of these resolved institutions,” the statement, said.
The Receiver further emphasized that the Bank of Ghana has agreed to fully pre-finance the full settlement of employee-related claims, which otherwise rank as unsecured claims in the receivership of these companies.
In line with the hierarchy of creditor claims set out under Act 930, other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions,” the statement further emphasized.
Below is the statement from the receiver: