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The Ministry of Finance has released about 1 billion GH ¢ to help clean up the microfinance and rural banking sectors.
Sources said the funds had been released earlier this month for the project.
Context
In the past two years, some microfinance companies have faced financial problems that have led to bankruptcy.
As a result of this development, some depositors of these institutions have difficulty filing.
Details of the proposed cleaning
JoyBusiness understands that the Bank of Ghana would oversee the process as the regulator of the sector. However, the consolidated bank would make the payments to the customers or institutions concerned.
This should mean that the funds would be housed at the consolidated bank.
The funds would mainly be used to repay the depositors of microfinance companies that have been affected or have difficulty recovering their funds.
The proposed date for cleaning
For now, the actual date of launching the process is unclear, but what JoyBusiness has learned is that it will happen soon.
Sources close to the finance ministry said they were speeding up the process to quickly clear funds for the savings and loans sector because the costs involved were not so high compared the planned clean-up of the microfinance sector.
Institutions likely to be affected
According to recent data published by the Bank of Ghana, 319 microfinance companies would be in good standing.
JoyBusiness can not independently establish that these funds would only go to those who are in good standing or to all businesses.
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