The Bank of Ghana has appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers as Receiver for the microfinance providers whose licences were being recently revoked.
The central bank on Friday, May well 31, 2019, revoked the licences of 386 bancrupt microfinance and microcredit providers.
This incorporates 192 microfinance providers obtaining their licenses revoked with another 155 insolvent firms that have ceased operations also struggling the same fate.
The central financial institution also revoked the licences of 29 insolvent microcredit providers.
The Bathroom stated that pertaining to the microfinance corporations, it took the action pursuant to segment 123 (1) of the Banks and Specialised Deposit-Getting Institutions Act, 2016 (Act 930).
The principal responsibilities of the Receiver for the microfinance and microcredits are:
(i) To recover and maximise asset realisations for the gain of Lenders together with generally Depositors and
(ii) Distribute realisations in accordance with the suitable provisions of Act 930, to fulfill the indebtedness of these establishments to their overall body of Collectors, to the extent attainable.
The Bog claimed in a statement (released in total beneath) that:
“In buy for the Receiver to identify the indebtedness of impacted microfinance organizations to their entire body of Creditors as nicely as the order of rating of these Collectors for dividend distribution, as ideal, it is the intention of the Receiver to set in position a Creditor Administration method with the following functions:
“(i) Submission of Proof of Debt (“PoD”) forms-Lenders will be expected to post their statements by completing a PoD type to be built by the Receiver. In filling these sorts, Collectors will be necessary to attach appropriate documentation supporting their claim(s) as well as quantities owed to them.
“(ii) Validating and agreeing statements:-the Receiver will independently confirm and reconcile the promises submitted by Lenders to the data of the impacted microfinance businesses, to decide the validity and quantum of declare built by the Creditor.
“(iii) Payments to Depositors-with regard to the depositors of the afflicted microfinance organizations, the Receiver will make payments to this class of Creditors making use of cash delivered by Government for this goal.
“(iv) Payments to other Collectors — For the class of other Collectors (excluding depositors), based on the quantum and timing of asset realisations in the receivership of the affected microfinance companies, the Receiver will declare and pay back dividends to this class of Lenders in accordance with the get of rating of Collectors presented in the applicable sections of Act 930.”
Read through the total assertion on the appointment of the Receiver down below.
Observe OF REVOCATION OF LICENCES OF Insolvent MICROFINANCE Businesses AND APPOINTMENT OF RECEIVER
The Financial institution of Ghana (Bog), in accordance with Section 123(2) of Act 930 has appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers (Ghana) Limited (“PwC”) as Receiver for the needs of winding down the affairs of microfinance companies whose licences were revoked on 31st May perhaps 2019.
The major responsibilities of the Receiver are:
(i) to get well and maximise asset realisations for the profit of Collectors like predominantly Depositors and
(ii) distribute realisations in accordance with the suitable provisions of Act 930, to satisfy the indebtedness of these establishments to their physique of Lenders, to the extent achievable.
In order for the Receiver to decide the indebtedness of afflicted microfinance providers to their entire body of Collectors as well as the buy of ranking of these Creditors for dividend distribution, as suitable, it is the intention of the Receiver to put in spot a Creditor Administration procedure with the pursuing characteristics:
(i) Submission of Proof of Credit card debt (“PoD”) forms-Lenders will be needed to submit their claims by finishing a PoD variety to be built by the Receiver. In filling these forms, Lenders will be required to attach related documentation supporting their claim(s) as effectively as amounts owed to them.
(ii) Validating and agreeing claims:-the Receiver will independently validate and reconcile the statements submitted by Collectors to the information of the influenced microfinance firms, to ascertain the validity and quantum of declare made by the Creditor.
(iii) Payments to Depositors-with regard to the depositors of the afflicted microfinance businesses, the Receiver will make payments to this course of Collectors applying cash provided by Government for this reason.
(iv) Payments to other Creditors — For the course of other Lenders (excluding depositors), depending on the quantum and timing of asset realisations in the receivership of the affected microfinance organizations, the Receiver will declare and spend dividends to this class of Lenders in accordance with the buy of rating of Lenders delivered in the pertinent sections of Act 930.
Subsequent his appointment, the Receiver has commenced the procedure of having command around these impacted microfinance organizations, as part of the orderly winding up of the operations of these establishments.
It is the intention of the Receiver to carry out an evaluation of the condition of affairs of these institutions in get to determine the kinds and values of assets and liabilities of these microfinance organizations as at the graduation of receivership.
The Receiver estimates that this assessment will be accomplished inside of the upcoming 10 times.
Whilst the Circumstance assessment is on-likely, all Creditors which includes depositors will be requested to post their completed PoD forms with supporting documentation to the Receiver for validation and agreeing as established out earlier mentioned.
The Receiver estimates that the method of validating and agreeing with Creditor statements will consider an additional 30 days from the date of the deadline for the submission of Creditor promises.
For the duration of this period of validation and agreeing statements, depositor promises which have been validated and acknowledged in the receivership will be compensated concurrently at selected Consolidated Lender of Ghana Ltd (CBG) branches, to the extent feasible.
Stakeholders may immediate all problems on the receivership of their impacted microfinance companies to The Receiver, Eric Nana Nipah, PricewaterhouseCoopers (Ghana) Ltd, 3rd Ground, Una Home, Airport Metropolis Accra or on +233 () 302 761 500.
ERIC NANA NIPAH RECEIVER
WITH Approval FROM Bank OF GHANA