CDH Savings and Loans worried about blocking funds with CBG

Company News of Monday, January 28, 2019

Source: Myjoyonline.com

2019-01-28

CDH Savings and Loans has expressed concern over blocked funds with the Consolidated Bank of Ghana (CBG).

These funds consulted would be the main reason for late payment of client funds by most savings and credit companies.

During the clean-up of the banking sector, seven banks withdrew licenses from the Bank of Ghana and the Consolidated Bank of Ghana (CBG) was created.

Martin Asamoah, executive director of CDH Savings and Loans at JoyBusiness, said: "To tell you that there was no liquidity problem in the financial sector, it will be a lie. Following the takeover of Capital and UT Banks in 2017, panic withdrawals have had a minor effect on us. As some of our funds are frozen at the consolidated bank, steps have been taken to recover them and we hope this problem will be solved very soon. "

Defunct Capital Bank: lawsuit against CDH Savings and Loans

Mr. Asamoah had previously expressed his biggest surprise at the lawsuit filed by the deceased Capital Bank's sequestrator.

He noted that the CHR and the receiver's legal team had held several meetings since the beginning of the crises.

"We have funds from the capital bank and they also have funds with us because we have been negotiating together and cooperating since the beginning of the crises," he said. When the attorney wrote to us, we even initially announced our statements about the amounts we had with the capital's bank. We met with the attorney's attorney and had in-depth discussions, "said Asamoah.

He added that both parties were agreeing on the numbers and that a close look at these numbers shows that the defunct bank was even owed to the CHR. "If I show you the courier's mail, the net figure of our February 2018 deal was badumed to be 55 million GH. They are suing us for 100 million GH and I wonder how it went there, "said Asamoah.

Panic withdrawals in savings and loan companies

Some of the country's savings and credit companies have been affected by panic withdrawals.

The development has already made it difficult for these companies to meet the demands of their customers.

According to some companies, the situation was aggravated by the fact that most of their clients did not repay their loans on time.

The Executive Secretary of the Association of Savings and Credit Societies, Tweneboah Kodua Boakye, for example, said the situation was very bad and her activities were under heavy pressure.

He said: "When you talk to some of these depositors, they will just tell you that we really do not need the money, but that we are just not sure of your future and therefore withdrawals.

He added that depositors should understand that everything is secure and that the reforms undertaken by the Bank of Ghana would guarantee the security of the entire system.