The government of Ghana is expected to announce a GHC2 billion ($414,340,000) bailout package for six indigenous banks to allow them to meet the recapitalisation deadline which is today December 31, 2018.
Sources say that the bailout package was arranged this month for the six banks which are seen to be well-governed and solvent but unable to meet the Bank of Ghana’s GH₵400 million new Minimum Capital Requirement (MCR).
The six banks risk having their licenses revoked or at best downgraded to savings and loans companies if they fail to recapitalise. This directive and deadline were issued since September 2017 when the directive was issued.
One source said the GH₵2 billion is to be sourced by a special purpose vehicle (SPV), the Ghana Amalgamated Trust Limited (GAT), which the government incorporated on December 17 to execute the transaction.
It was disclosed that the SPV is to raise the funds through the issuance of a bond that will be sold to both domestic and foreign investors.
It added that the bond will be partially guaranteed by the government to make it “sweeter and comfortable” to investors to participate.
According to GraphicOnline, even though stakeholders are yet to fine-tune the modalities of the deal the BoG has since given its blessing to the arrangement, making it possible for the beneficiary banks to be classified as recapitalized.
Another source also said that there is a possibility the number of beneficiary banks will increase to about eight as more indigenous banks come forward for the support.
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