Gov’t given 2-week ultimatum to re-open microfinance firms shut down by BoG

Account holders of some microfinance institutions closed down by the BoG at Berekum in the Brong Ahafo region have embarked on a demonstration to protest the Central Bank’s decision.

Dressed in red and black outfits, the angry protestors say they want their monies back and asked government to ensure all the firms are re-opened in two weeks.

According to Joy News regional correspondent, Precious Semevor, the protestors have vowed not to vote in the 2016 general elections if the BoG does not rescind its decision.

The BoG on Tuesday revoked the licenses of 70 microfinance and money lending companies across the country.

It said in a statement that the provisional licenses given to the 70 companies to operate had expired.

According to the current BoG rules, persons wanting to undertake Banking or microfinance business are often given a provisional license, to begin the processes becoming a bank or properly registered microfinance company pending the issuance of a final license.

The 70 companies, according to the BoG, were issued with provisional licenses in July 2015 but they failed to meet all the requirements to be given the final licenses to operate. They were nonetheless operating with the provisional licenses, forcing the Central Bank to close them down.

The affected companies have six months to meet all requirements and be given the right to open their doors to the public.

Leader of the protestors said the main objective of the demonstration is to put pressure on government to help retrieve their investment.

Alex Obeng said they will ensure that no bank or government institution works if after two weeks their grievances are not addressed.

Story by Ghana | | Naa Sakwaba Akwa | [email protected]

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