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The Finance Minister, Ken Ofori Atta, has revealed that through government’s intervention in  the collapse of seven banks – Unibank, Beige Bank, Sovereign Bank, Construction Bank, Royal Bank, Capital Bank, UT Bank, deposits of about GHS11 billion were saved.

“Through the government’s intervention in August this year, deposits of some GHS11 billion have been saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017. The Government’s action has also created a strong indigenous Ghanaian bank in place of the five failed banks. The Government is committed to ensuring that Consolidated Bank Ghana Limited remains a strong customer-oriented indigenous bank, well positioned to meet the demands of all its customers and to serve as the go-to bank for financing Small and Mediums-size Enterprises (SMEs) and corporate Ghana” he said on Thursdday, while presenting the 2019 budget statement in Parliament.

However, “rescuing the situation regarding these seven banks has, so far, cost some GHS9.9 billion in monies that the government had not budgeted for and could have surely been put in good use to fix our numerous infrastructural needs, such as housing, roads, bridges”

He added: “The government has continued to provide assurances to depositors and customers of licensed banks and specialised deposit-taking institutions, through demonstrable actions, that their deposits are safe. Indeed, following the creation of the Consolidated Bank Ghana Limited (a wholly owned Government of Ghana and licensed by the Bank of Ghana as a universal bank), the government capitalised it with GHS450 million. In addition, Government had to issue a bond with a face value of GHS7.6 billion to cover the gap, between the deposit liabilities and the remaining good assets of the failed banks. This singular action of government has reposed confidence in the banking system because it will ensure that no deposit will be lost and customers will continue to access their deposits without difficulty.