The Locked-Up Investment Holders Forum has urged the Finance Ministry to include provisions in the Mid-Year Budget Review to address issues with insolvent financial institutions and ensure the payment of dividends to investors whose funds are currently locked up.
Speaking during a demonstration on Wednesday, July 3rd, the forum’s convener, Dr Adu Anane Antwi, called on the government to allocate funds in the budget review for the release of depositors’ locked-up funds in insolvent financial institutions.
He referenced the Bank of Ghana’s commitment to revoke licences and pay depositors once resources are made available.
“We want to see a provision made in the budget to cover the specialised institutions that have now become insolvent…so we are saying the government through the Ministry of Finance should make financial provisions in this Mid-year review so that the Bank of Ghana can revoke these licences and pay depositors our locked-up funds.”
Dr Adu Anane also cautioned against prioritising the recapitalization of the National Investment Bank (NIB) over other crucial financial commitments, suggesting that the allocated amount of GHS 2.7 billion is excessive and could be reduced to GHS 1 billion, with additional funding provided in the next year.
“I’m pleading with a government that the 2.7 billion that it budgeted for NIB is too much, given the circumstances that we find ourselves now when people are dying, they don’t have the money.
“NIB, under the Banking Act, needs a minimum capitalisation of 400 million. If you give them 1 billion, they have gone over the minimum capital and they can operate soundly. The next year, you can top up regularly, but not today.”
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