The ARB Apex Bank has expressed dissatisfaction with the release of 1.5 billion Ghana cedis by the government to compensate customers affected by the banking sector clean-up exercise.
President Akufo-Addo had instructed the Finance Ministry to disburse the funds in June 2024 to alleviate the financial burden on affected customers. However, the supervisory bank for rural and community banks revealed that over 350 million Ghana cedis remain locked up as a result of the clean-up.
Dr. Anthony Aubynn, the Board Chair of the ARB Apex Bank, emphasized that the amount released is insufficient and continues to hinder the operations of the banks. Speaking at the bank’s 22nd annual general meeting in Kumasi, he highlighted the impact of the unpaid funds on the banks’ resources.
The Finance Minister, Dr. Mohammed Amin Adam, later announced a reduction in the government’s original allocation of 4.5 billion cedis for the cleanup payments to 3.5 billion cedis. This amount is expected to be paid in tranches, with the current release being the first subset.
Dr. Aubynn called for special consideration for the rural banking sub-sector, emphasizing its significant role in the Ghanaian economy by providing loans to farmers, carpenters, and small businesses. He stressed the need for the government to recognize the essential services provided by rural banks and grant them dispensation from similar exercises.
Management is actively working to recover the locked-up funds by engaging with relevant authorities. The ARB Apex Bank has also secured a five-year on-lending facility agreement of 4 million dollars to support the development of the sub-sector. The first tranche of 11.85 million cedis has already been received, with plans for further disbursements in the future.
