Accra: The government is developing a policy framework to regulate the use of unclaimed balances in dormant bank accounts to support national development while safeguarding the rights of account holders, the Minister of Finance, Dr. Cassiel Ato Forson, has announced.
According to Ghana Web, the policy, currently under review by the Ministry of Finance, will draw on international best practices to ensure that dormant financial assets are managed transparently and in the public interest without compromising ownership rights. A speech delivered on behalf of the Minister by the Coordinating Director (Technical) at the Ministry of Finance, Samuel Akhurst, at the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana and Bank of Ghana (BoG) Non-Performing Loans (NPLs) Forum in Accra, stated the government is committed to developing a robust legal and governance framework tailored to Ghana's circumstances.
The forum, themed 'Financing Distressed Companies: The Impact of Non-Performing Loans (NPLs), IFRS 9 Standards and Prudential Regulations on Post-Commencement Financing for Distressed Companies under Rescue and Possible Interventions,' provided a platform for the announcement. Dr. Forson emphasized that the proposed policy would be guided by three key principles: the protection of ownership rights, transparency and accountability in the management of dormant assets, and the effective use of eligible dormant funds strictly in the public interest under strong legal safeguards.
He highlighted the government's recognition of the growing global interest in making productive use of dormant financial assets while ensuring that rightful owners could reclaim their funds at any time. The government is committed to an inclusive consultative process involving regulators, financial institutions, insolvency practitioners, and other professional bodies to ensure that the policy reflects the needs of all stakeholders.
Touching on the broader economy, Dr. Forson noted Ghana had made significant progress in restoring macroeconomic stability through fiscal discipline, prudent monetary policy, and ongoing structural reforms. He mentioned that inflation had declined considerably, while exchange rate stability had improved, creating a more favorable environment for businesses and investment.
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, stressed the need for a stronger framework to support financially distressed but viable businesses without undermining financial stability. Despite the legal backing provided by Ghana's Corporate Insolvency and Restructuring Act (Act 1015) for business rescue and post-commencement financing, banks face challenges in determining the recovery potential of distressed companies.
Dr. Asiama pointed out that lenders must conduct rigorous assessments based on credible financial information, sustainable cash flows, and realistic restructuring plans before extending fresh financing. He noted the country's non-performing loans ratio had declined significantly but remained above the Bank of Ghana's target, emphasizing the importance of reducing bad loans to expand credit to the private sector and support economic growth.
The President of CIRIP Ghana, Felix Addo, expressed concern over the low number of companies seeking formal business rescue since the insolvency law came into force, attributing it to limited awareness, inadequate access to rescue financing, and regulatory constraints affecting banks' willingness to support distressed businesses. Addo called for stronger institutional capacity, specialized insolvency courts, and the establishment of a national distress fund to improve business rescue efforts and help preserve viable companies, jobs, and investments.