By Enock Akonnor enockakonnor2013@gmail.com
+233 541921562
President of National Association of Rural Banks, Ghana, His Worship Eric Danning is vehemently pushing for the release of locked-up funds of Rural and Community Banks (RCBs) which currently amounts to around GHs 500.00 million.
His demand follows a commenced disbursement of about GHs 1.70 billion of the outstanding locked-up capital by GCB
Capital to individuals who were impacted by the financial sector cleanup.
He is peeved by the non-inclusion of RCBs in the repayment agreements by the Ministry of Finance and Bank of Ghana, saying that the release and disbursement of RCBs locked up funds can substantially influence the functioning of the 147 RCBs.
Speaking at the 23rd Annual Conference of CEOs of Rural and Community Banks at the Volta Serene Hotel, Ho on Thursday, 17th October, 2024, the President urged the Ministry of Finance and Bank of Ghana to prioritize the inclusion of RCBs in the repayment agreements to ensure that they receive their fair share of the locked-up capital.
“Additionally, I request for a clear timeline for the disbursement of funds to provide much-needed relief to the struggling RCBs.
We would appreciate your assistance in releasing locked up funds to aid distressed RCBs and in providing concessional facilities via the ARB APEX Bank for the acquisition of recommended armoured vehicles to improve operating efficiency and security at all RCBs.
This will not benefit the RCBs in their operations but also contribute to the overall stability and growth of the financial sector”.
His Worship Eric Danning said in his address that “it is an indisputable fact that the RCBs, regardless of the difficulties posed by these locked up funds, may be unable to demonstrate publicly.
However, if the case is not pursued to its logical conclusion and the funds released, considering that the withheld funds belong to our valued customers, it is likely that the consumers would take matters into their own hands, and the repercussions of their actions remain uncertain. As the adage states, “a stitch in time saves nine.”
