Ken Ofori-Atta, the Finance Minister

Ken Ofori-Atta, the Finance Minister, has disclosed during the presentation of the 2020 budget to Parliament that, the government spent about $11.7 billion to clean-up the banking sector.

According to him, the initiative was government’s way of intervening to save depositors and investors whose funds were locked up in failed financial institutions.

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“The intervention of government to save depositors and investors whose funds were locked up in failed financial institution has been very costly,” he said.

“In 2017 and 2018 the government spent 11.7 billion to save depositors held by banks that were resolved by the Bank of Ghana and set up the Consolidated Bank Limited,” he said.

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He further added that the government spent GH¢1.5 million to revoke the licenses of certain financial institutions all in the interest of safeguarding depositors and investors.

“This year government had to intervene again to provide relief to depositors when the Bank of  Ghana revoked the licenses of 347 micro-finance institutions, 15 savings and loans and eight finance houses. Our total cost for this exercise was about 1.5 million cedis,” he added.