We have GH¢1.35bn locked up in collapsed Microfinance, S&Ls – Fund Managers lament

The Ghana Securities Industry Association, GSIA, is appealing to the Ministry of Finance to urgently facilitate the payments of locked up monies estimated at 1.35 billion cedis, belonging to its members in the collapsed Savings and Loans and Microfinance Companies.

The Association says the delay in accessing their funds is affecting onward payments to their customers.

According to the Fund Managers, a total of 1.87 billion cedis belonging to members, were locked up in the collapsed Savings and Loans and Microfinance institutions.

A statement signed by the Executive Secretary of the Council for Fund Managers said though more than 1.43 billion cedis of the 1.87 billion cedis locked up have been validated, only 83 million cedis has been paid to Fund Managers and their clients in cash.ADVERTISEMENT

Following the revocation of the licenses, the receiver, Eric Nana Nipah announced that the government will be raising about 4 billion cedis at no interest, to help in paying the affected depositors.

This is to be done over a five year period.

Payments were however going to be made twice every year till the five year period is over.

The Fund Managers say the 7% of the total locked up amounts given to its members is woefully inadequate compared to the over 50% cash payments some institutions in other sectors of the financial system have received.

“Our goal is for our numerous clients to be given a higher cash portion. An increase in the cash component of the pay-out will ease the already tight liquidity situation in the sector and provide relief to these clients,” portions of the statement read.

They are convinced that their ability to access their funds should ease liquidity in the investment market.

source citibusinessnews

Do NOT follow this link or you will be banned from the site!