Microfinance customers urged not to resort to panic withdrawals

The Ghana Micro Finance Institutions Network (GHAMFIN) has appealed to the public not to resort to panic withdrawals, following the cleanup exercise by the Bank of Ghana.

Microfinance customers urged not to resort to panic withdrawals
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The Ghana Micro Finance Institutions Network (GHAMFIN) has appealed to the public not to resort to panic withdrawals, following the cleanup exercise by the Bank of Ghana.

The group in press statement assured that “it is safe to do business with the 137 microfinance and 31 microcredit companies” in good standing.

The Bank of Ghana last week revoked the licenses of 347 microfinance companies and 39 microcredit companies after the regulator declared them as being insolvent.

Reacting to the situation for the first time, GHAMFIN pointed out that the sector remains the main source of access to finance to the informal sector of the economy.

The group was hopeful the Receiver named by the Bank of Ghana, Eric Nana Nipa will announce venues for payments to clients of the collapsed companies.

“We entreat the clients of affected institutions should remain calm as the government has made provision to enable the receiver settle depositors upon validation of their claims,”

The statement disclosed that GHAMFIN has been in contact with the Bank of Ghana prior to the exercise.

GHAMFIN is a network of Microfinance Associations, and member of microfinance institutions engaged in the provision of microfinance services.

The Bank of Ghana’s appointed receiver for the 347 collapsed microfinance companies, Eric Nana Nipah, will today start paying depositors whose claims have been validated and agreed.

This follows the release of funds by the Government to the Receiver.

A release issued by the receiver said over 420 personnel have been deployed across the country to validate and approve claims and to start making payments to depositors whose claims have been validated and agreed, without delay.

Payments to depositors will be made at designated branches of CBG, following notifications to these Depositors from the office of the Receiver.

“Depositors whose claims have been validated and agreed will receive phone calls from the Receiver’s representatives confirming the amounts due to them, and directing them to the designated CBG branches for the processing and payment of their claims to the extent possible,” the press release said.

Depositors will be required to provide valid ID documentation. These can either be passports, NHIS cards, Voters ID and Drivers Licenses.