BOG collecting monies from liquidated banks

Accra (Greater Accra), 19^th January 2000

The Central Bank has begun collecting all monies lodged in the vaults of the Bank for Housing and Construction and the Co-operative Bank, which were liquidated on Monday.

It is also in the process of working out modalities such as asset valuation, loan position of customers and validation of depositors' money to ensure that no one or groups of people get paid more than are due them.

An official of the Bank of Ghana (BOG), who is accompanying Price Waterhouse Coopers, the official liquidator, told the Ghana News Agency that all these steps have to be taken before any money is paid out.

"We must say that these will be done within the next few days in order not to create any panic among depositors.

"I must say that with the position of the government to subrogate the claims of customers, all their money is safe.

"Customers should not have any fears. Their money is very safe, and all we need is time."

He said with the scandals involving the two banks from the A-Life issue, the liquidated banks should have gone off the books a long time ago.

"But we decided to give it a human face just to ease the effect it will have on people associated with the bank".

As to the consequences of the current action e on the banking industry itself, the source said it all depends on how fast deposits are paid out to customers in order to keep their trust.

"Banking thrives on trust. If the banks to which customers have to be paid through delay, making people lose trust in them, then the industry will suffer a jolt."

Employees of the banks, according to the BOG official, should have been sent home without any entitlement.

"But under the circumstances something will be worked out for them."

GRi