The Executive Director of the Ghana Microfinance Institutions Network (GHAMFIN), Yaw Gyamfi, has described the revocation of licenses of 347 microfinance companies as one that is necessary but a headache to the industry.
The central bank on Friday, May 31, 2019 revoked the licenses of these 347 microfinance institutions in the country on grounds of being insolvent with others having already ceased operations for various reasons. The BoG has assured depositors will be reimbursed via receivership process.
Commenting on the issue on Onua FM Thursday June 6, Mr. Gyamfi confirmed that the affected microfinance institutions were indeed not meeting the requirements set by the Bank of Ghana, noting some were insolvent and others had ceased operation.
He added that efforts by the Network and the central bank to help resuscitate the affected companies proved futile.
According to Mr. Gyamfi, the clean-up exercise was a great blow that hit them, citing as huge, the number of microfinance institutions involved.
He noted however that GHAMFIN is not in any way against the action of BoG, but is only worried about the ramifications.
“Some of these excises are disheartening. I know someone who has worked for 10 years but his licence was also revoked. Meanwhile, some issues of this sort need to be addressed as it may harm us in future. As I earlier said, it is a necessary evil, the action of the bank of Ghana is a step in the right direction, we as an institution will also put things right and move on”, he stated.
He charged the remaining 137 microfinance institutions to step up their efforts and comply with the BoG’s requirement as well as adhere to codes and conduct to remain concrete institutions.
By Juliet Etefe |3news.com|Ghana