President Akufo-Addo has described the banking sector crisis as one of the difficult problems his government encountered in his first term.
According to him, many of the banks were in distress and had been kept on unsustainable and artificial life support by the Bank of Ghana.
President AkufoAddo described the activities of most of the financial institutions as glorified Ponzi schemes, adding that, they lured many depositors into the scheme.
He made the comment when he delivered his final speech at the dissolution of the 7th Parliament on Tuesday, January 5, 2021, stating radical measures had to be taken to save the sector.
“The supervisory agencies were unfortunately not performing their duties and the
governance and management structures of many the banks were clearly not adequate.
“We were in a desperate situation and urgent, radical measures had to be taken to
prevent the collapse of the entire financial and banking sector, he said.
However, he expressed excitement the timely intervention of his government saved the face of Ghana’s financial sector despite the backlash.
“The government had to find some twenty-one billion cedis (GH¢21 billion) to fund
the cleaning up exercise. This exercise has enabled a more robust financial and banking services sector to emerge and better finance the rapid development of our nation,” he added.
Though he admitted the outcome of the exercise was a painful lesson due to the job of losses and depositors’ funds, President Akufo-Addo said all affected customers will be paid in due time once claims are validated and the court grants liquidation orders.