President Akufo-Addo Directs Release of GHc1.5 Billion to Assist Affected Customers in Banking Sector Clean-Up

President Akufo-Addo has directed the Ministry of Finance to release GHc1.5 billion to assist customers impacted by the government’s banking sector clean-up exercise. This announcement was made by the Minister of Finance, Dr. Mohammed Amin Adam, during his official visit to the UK at a Town Hall meeting over the weekend.

In his address, Dr. Amin Adam highlighted that the President’s directive mandates the disbursement to be completed between now and October. The banking sector clean-up, initiated by the government to address issues of insolvency and malpractices within the financial sector, left many customers in financial distress as several banks and financial institutions were closed or restructured.

Dr. Amin Adam emphasized that the government is prioritizing the welfare of the Ghanaian people, acknowledging the severe impact the clean-up has had on individuals. While stressing that individuals are responsible for their investment decisions, he noted the government's commitment to providing support in these exceptional circumstances.

“Ideally, government should not be held responsible for the investment decisions of individuals, but this government is so caring," he remarked. "Mistakes were made and people were not well-informed, and they didn’t know who to consult to be advised, but we also know that the people who are affected are suffering, and we have heard that some people have died and others had to commit suicide.”

He continued: “This government is so caring that in the first place, we granted some bailout to all the affected, and I want to tell you again that the President has directed that we do another bailout. So between now and October, we will release 1.5 billion Ghana Cedis to the affected people.”

The Ministry of Finance, under the directive of President Akufo-Addo, aims to expedite this financial support to alleviate the hardships faced by those whose investments were adversely affected by the banking sector reforms. This new tranche of bailout funds is intended to provide much-needed relief and restore some confidence in the financial sector.

The government had previously implemented a series of bailouts to stabilize the financial sector and protect depositors. These efforts are part of a broader strategy to ensure a more robust and resilient banking environment in Ghana, preventing future crises and safeguarding the interests of the general public.

Dr. Amin Adam reiterated the government's resolve to learn from the past and improve the financial literacy and advisory services available to the public, ensuring better-informed investment decisions in the future. This initiative is not just a financial relief measure but also part of a comprehensive approach to building a more secure and transparent financial system for all Ghanaians.