Business News of Thursday, 16 January 2020Source: classfmonline.comShareholders asking gov’t to shoulder cost of UT Bank’s bad loans 'preposterous' – BoG GovernorDr Ernest Addison, BoG GovernorThe Bank of Ghana has described as preposterous, a request by shareholders and directors of the now-defunct UT Bank for the government to assume the cost of bad loans created by the bank at the expense of taxpayers while the shareholders benefitted from an injection of money from the government for the bad loans it would have assumed. “It was such a self-serving proposition for shareholders, directors, and managers of UT Bank (some of whom were also shareholders) to mismanage the bank through poor credit administration and poor governance in general and require the state to bear the cost of the resulting bad loan portfolio. On Capital Bank, Dr Addison said it refused to cooperate with potential private sector acquirers and was not even going to allow due diligence to be carried out. or what would be the fate of those who had claims on the two banks? amongst others In particular,After all these considerations, the Governor said government agreed to provide relief to depositors by stepping in to guarantee the payment of all depositors’ funds.

Source: GhanaWeb January 16, 2020 15:45 UTC