The cost of the ongoing financial sector clean up is likely to reach GH¢21 billion by close of this year, according to new figures by Finance Minister, Ken Ofori-Atta.
The Finance Minister, projected on Monday during the Mid-year Budget Review presentation that it is likely that the clean up could reach $3 to $4 billion dollars by end of this year.
This is equivalent to GH¢21 billion using the Bank of Ghana’s dollar transaction rate for commercial banks
This new figure is about GH¢3 billion more than what Joy Business projected last month.
However, the projected figure may even be realised before the end of this year following revelations by the Finance Minister to Joy Business earlier that the last batch of reforms – which will target the loans sectors – will happen before the end of September 2019.
Joy Business is also learning that this may exclude the estimated cost of any clean up in the capital and investment space.
The huge cost of the financial sector clean up is raising concerns about whether the general approach to the financial sector clean up was sound.
It is also uncertain whether the appointed Receivers will be able to recover the costs from owners and directors of the liquidated financial institutions.
For instance, one of the Receivers intimated to Joy Business that it is a difficult task to identify assets owned by owners or directors of these defunct institutions.
Meanwhile, the projected GH¢21 billion is likely to increase further by the end of this year.
Source: Joy Business