289 Microfinance Entities To Halt Operations

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Close to 289 microfinance companies are likely to be out of business if the Bank of Ghana does not extend the deadline for the new minimum capital requirement for players within that space.

All microfinance firms are expected to increase their capital from Gh¢500, 000 to Gh¢ 2 million by June 2018.
The move is to build a robust microfinance sector.

According to the Ghana Microfinance Institutions Network (GHAMFIN), just about 30 out of the 319 microfinance companies are in good standing.

“We are still anticipating that by June most of them will be able to meet the minimum capital; if they haven’t met it, then we are anticipating that the central bank will ask them to merge or move down the tier,” the Executive Director of GHAMFIN, Yaw Gyamfi told Starr Business’ Osei Owusu Amankwaah.

GHAMFIN has also sent a proposal to the Central Bank seeking audience with the governor for an extension of the deadline to 2022.

“We have sent a full proposal, titled; ‘The proposal to strengthen the development of the microfinance industry in Ghana’ and we made some recommendations, one of which is the extension of the deadline to 2022.”

Their concern comes on the back challenges by some 17 local banks struggling to meet the Gh¢400 million minimum capital by the end of the year.

GHAMFIN is contemplating adding their voice to calls on the President to push the Bank of Ghana to extend the Deadline.

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Source: Starrfmonline.com

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