Stop the drama and recapitalise NIB, ADB – Adongo to Ofori-Atta

Business News of Thursday, 20 December 2018

Source: classfmonline.com

2018-12-20

Bolgatanga Central MP, Isaac Adongo

Bolgatanga Central MP Isaac Adongo has charged Finance Minister Ken Ofori-Atta to put an end to the “drama” over the recapitalisation of the National Investment Bank (NIB) and adb Bank.

He was of the view that proper structures need to be put in place to ensure a smooth operation of the two state-owned banks.

“After refusing to take action to address the recapitalisation of these banks for almost a year now, the Minister of Finance should not be creating an impression that we are in an emergency situation in their recapitalisation,” he told Graphic Business.

The financial analyst further charged the government to ensure that the two other state-owned banks, the recently-formed Consolidated Bank Ghana Limited (CBG) and GCB Bank, do not face liquidity challenges after raising bonds following the collapse of seven local banks which were morphed into CBG.

He was of the opinion that: “This will immediately release GHS9 billion liquidity to these banks to enable them to meet their obligations to the customers and restore confidence in the banking sector”.

Also, Mr Adongo has entreated President Nana Akufo-Addo to fulfil his promise to support local banks to survive.

The Association of Indigenous Universal Banks made a passionate appeal to Mr Akufo-Addo to have the central bank extend the deadline for the GHS400 million recapitalisation, which is 31 December 2018.

The banks said the period given them to recapitalise was too short and posed a risk to their business. A petition signed by the CEOs of all the banks said they could recapitalise to GHS170 million by the end of 2018, GHS220 million by the end of 2019, GHS280 million in 2020, GHS340 million in 2021 and GHS400 million in 2022.

Subsequently, Mr Akufo-Addo was expected to set up a 10-member committee to act on the petition.

He said Mr Akufo-Addo “promised to set up a 10-member committee made up of representatives from the Bank of Ghana (BoG), Ministry of Finance and the Office of the President to report to him in two weeks to enable him to announce and implement his government’s support to the local banks. It’s been 8 months since he made the promise without any announcement and support to the local banks”.

Mr Adongo stressed that “with just about two weeks to the deadline, I entreat the president to redeem his promise and save these banks. He should not supervise the collapse or consolidation of any more local banks”.

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