GN savings and loans in talks with another bank to improve liquidity

Company News of Monday, February 11, 2019

Source: Myjoyonline.com

2019-02-11

GN Savings and Loans, formerly GN Bank, announced the finalization of negotiations with another bank to eventually help it meet its financial obligations.

This decision is part of some emergency measures to deal with the liquidity problems facing the savings and credit company.

Details of the transaction

JoyBusiness learns that GN has received requests from eight commercial banks seeking to act as a "partner institution".

GN Savings and Loans is in the process of finalizing negotiations with one of them with an announcement scheduled in the coming days.

This would help GN to depend on this bank for the clearing of its checks and Forex trading, as it should lose this function from the middle of this year.

As a result of the reclbadification of GN Bank, now Bank and Savings, the financial institution of the Bank of Ghana can no longer badume this function.

It is planned to close this operation and service by the middle of this year.

Negotiations are structured to help improve the liquidity of the GN Savings and Loans division. This should help the GN to honor deposit withdrawals in the coming weeks.

GN savings and credit problems

GN savings and loans in previous months had struggled to meet deposit withdrawals. Some of them have really become mean, some customers camping in their wickets until their deposits are paid.

The institution had previously asked the Bank of Ghana to approve its redeployment in savings and credit, which was done in January of this year.

GN Savings and Loans stated that the move would have little impact on its operations.

Indeed, its main activities would not be greatly affected. only that it would be limited with respect to checking accounts and Forex trading.