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President Akufo-Addo Directs Ministry of Finance to Release ¢1.5 Billion for Banking Sector Clean-Up Compensation

In a decisive move to address the financial distress caused by the recent banking sector clean-up, President Nana Addo Dankwa Akufo-Addo has directed the Ministry of Finance to release ¢1.5 billion. This fund is intended to compensate customers affected by the government’s comprehensive overhaul of the banking sector.

The President’s directive comes in response to mounting public concern and widespread financial hardship faced by individuals and businesses who lost access to their funds during the regulatory exercise. The banking sector clean-up, which began in 2017, aimed to restore stability and confidence in Ghana’s financial system. It involved the closure of several insolvent banks and financial institutions, affecting thousands of depositors.

In an official statement released on Monday, President Akufo-Addo emphasized the government’s commitment to ensuring the financial well-being of its citizens. “The government recognizes the difficulties faced by many Ghanaians due to the banking sector reforms. This initiative is a critical step towards alleviating their hardships and restoring public confidence in our financial institutions,” the statement read.

The Ministry of Finance has been tasked with the immediate disbursement of the funds, prioritizing transparency and efficiency in the process. Finance Minister Ken Ofori-Atta assured the public that the funds would be distributed fairly and swiftly. “We are committed to ensuring that all affected customers receive their due compensation without further delay. The ¢1.5 billion will be allocated to address the claims of depositors, starting with those most in need,” he stated.

The release of these funds is expected to bring relief to many Ghanaians who have been in financial limbo since the banking sector reforms. Several affected customers expressed their gratitude for the government’s intervention. “This is a significant relief for my family and me. We have been struggling to make ends meet since our bank closed. I am thankful that the government is taking this step,” said Ama Kwarteng, a former customer of one of the defunct banks.

However, some financial analysts caution that the government must ensure the proper management of the compensation process to prevent potential fraud and misallocation of funds. “The release of ¢1.5 billion is a positive move, but it is crucial that the distribution is closely monitored to ensure that the money reaches the intended recipients,” noted Dr. Michael Owusu, a financial expert.

The banking sector clean-up was a necessary but painful process aimed at stabilizing the country’s financial system. While it succeeded in removing undercapitalized and poorly managed institutions, it also left a trail of financial disruption for many depositors.

President Akufo-Addo’s directive to release ¢1.5 billion marks a significant step towards rectifying the fallout from these reforms. As the Ministry of Finance begins the disbursement process, the hope is that this compensation will help rebuild trust in Ghana’s banking system and provide much-needed financial relief to affected customers.

story filed by; Nana kwaku Duah

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