Gabby Asare Otchere-Darko Explains Why Bank Workers Who Lost Their Jobs Will Vote for NPPs in 2020 | Policy

Yesterday, a good friend told me that the NPP could not expect bank employees who lost their jobs as a result of the banking crisis to vote for NPP in 2020.

My answer was, "I guess it's understandable. But what about the more than one million depositors who would have completely lost their savings if the government of the nuclear power plants had not acted against the toxicity that would have eventually crushed the whole world? ;industry? "

I think we should better tell the story. GH ¢ 11.2 billion, which was not budgeted, was spent on securing depositors' funds in collapsed banks. Ironically, the government does not get applause for that. Note: This amount represents more than the $ 2 billion Sinohydro facility that we have so vaunted! It is 11.2 billion GH ¢ that could have repaired our roads, our schools, our drains, our health centers, etc. Think of this government to be forced, by circumstances that are not itself, to spend a lot of money not for its own programs the negligence of others and the alleged crimes.

What has not been boldly said is that the Democratic National Congress has ruined the banking system. They led the banking sector to the brink of collapse by creating a lax system that allowed for various unconventional practices in the sector. This is what is being settled by the New Patriotic Party and will cost you, the taxpayers, very dearly! Know who to blame and who to praise!

According to the evidence, during the NDC regime, some banks engaged in the following activities which impaired their capital and liquidity, resulting in their collapse:

(1) Bad regulation and irresponsible corporate governance practices.

(2) Circumventing banking laws that led some banks to obtain licenses under false pretenses, false financial reports as well as insider trading.

(3) The Bank of Ghana, under the NDC government, effectively tolerated under-provisioning and related-party lending to the perverse extent that the wrong practice irreversibly undermined the capital adequacy of some of the banks. They were driving with a limited stock of steroids and falsely false.

(4) Nonperforming loans reached a record level because of bad credit practices of some of the banks, compounded by the reckless award of contracts by the NDC, which combined to make collapse the Loan and liquidity problems. Inflated contracts with a single supplier without downward price revision; NPLs have also risen since banks were indebted by legacy public sector debt, including $ 2.4 billion of debt from the energy sector, to the point that oil trading companies have gone into debt. also collapsed; a calamity that could have affected our economic ability to import even refined petroleum products for essential consumption.

(5) The Bank of Ghana, under the NDC government, tried to solve the problem under the carpet of shredding and managed the deterioration of the situation by providing liquidity support to these bankrupt banks in a way which they should have known that it was simply not viable. They even failed, even crime, the underlying problems that led to the illiquidity and insolvency of these institutions. In short, the financial system had reached a critical point and was on the verge of collapse.

(6) It's as if the management of the NDC and the BoG before 2017 worked with this devious and dubious philosophy: "Let's stay on the spot! Do not touch that because it would cost Li a lot to repair the mess. Let's pretend that the problem did not exist for the moment, let's put it on and hope that we will lose power in 2016 so that another government will come to fight to solve it if it can, with all the hbadle that accompany it and hope it will become it. unpopular staring at it, with us rubbing it in, that voters will turn against them for us who made sure that the mess regains power by 2020 after fixing it!

(7) To make matters worse, microfinance institutions and savings and credit companies have been hard hit by the lack of a comprehensive regulatory framework for these non-bank institutions. This has resulted in the collapse of many microfinance institutions, causing Ghanaians to lose their hard-earned savings and commercial capital.

(8) These problems are corroborated and well documented by the review of the International Monetary Fund and the World Bank 2015/2016, as evidenced by their findings and recommendations. Please go read it. You do not have to take my word for it. The NDC knew about the problem but kept it out and pretended everything was fine.

Let's look now at the measures taken by the BNP to avoid the collapse of the funds of depositors and the banking system.

The NPP Government, at the time of its inauguration, experienced a banking crisis that it did not create and must promptly propose bold and innovative interventions to restore confidence in the sector and protect depositors, companies and businesses. Ghanaian banks. With the support of the Government, the Bank of Ghana has embarked on a comprehensive and innovative reform program to clean up the sector and strengthen the regulatory and supervisory framework to make the banking sector more resilient. . These are the actions of a government concerned with the destiny of the country, the destiny of its economy and the well-being of the population.

Specifically, the current government has undertaken the following activities to save the situation

(1) The government and the Bank of Ghana intervened to prevent a banking crisis by initially injecting GHG 11.2 billion of public funds into the financial sector.

(2) These measures have not only saved the deposits of one million one hundred and forty-seven thousand three hundred and sixty-six (1,147,366) Ghanaians, as well as their enterprises and employees, but also minimized job losses in the banking sector. , as well as.

(3) The government also saved five Ghanaian banks that would otherwise have evaporated under the weight of their insolvency, providing a term guarantee of up to GH ¢ 2 billion.

(4) The current government has also taken steps to reduce all arrears of contractors. This has reduced non-performing loans in the Bank's books resulting from loans to contractors. This means that all banks claiming to be accountable to the government are not necessarily telling the truth until their claims are validated.

(5) The government has also taken steps to address the problem of energy sector debt by using ESLA PLC to issue energy sector bonds. The proceeds of the issue was used to pay the energy sector debts in advance. As a result, banks were freed from their traditional debts in order to free up cash and capital for investments.

(6) The government has developed and used these initiatives to protect jobs, local businesses, build the capacity of local banks and guarantee Ghana's strategic interests in the banking sector.

We should not underestimate the monumental rescue work the NPP has done for the banking sector in Ghana. We will see the benefits for a long time.

At the end of this cleaning exercise (banks, savings and credit, microfinance and badet management), more than 14 billion of GH ¢ of your money would have been spent by Ghanaian taxpayers!

Just remember that #TheAlternativeIsStillScary