17,350 have lost their jobs after the closure of 347 microfinance institutions - Minority

The minority caucus in parliament has said that the recent closure of banks and microfinance institutions have created economic hardship for many Ghanaians in the country.

According to them, per their gathered evidence, over 17,000 workers have lost their jobs as a result of the closure of 347 microfinance institutions.

Speaking at a press conference addressed by the Member

Read full articleof Parliament for Bolga Central, Isaac Adongo, he added that the financial crisis in the banking sector clean-up is serving more as a threat to the livelihoods of many people in the country than fulfilling its intended aim.

“Anecdotal evidence suggests that over 4,500 people lost their jobs as a result of the closure of the universal banks alone. Another 4000 just lost their jobs as well, due to the closure of 23 savings and loans institutions and finance houses; while a whopping 17,350 people are estimated to have also lost their jobs as a result of the closure of the 347 microfinance institutions.

“It is therefore that the crisis has created deep problems only for banks, businesses and depositors but also created a threat to the livelihoods of many of our people”.

The Minority also indicated that government is handling the banking sector reforms without proper directions and focus; failing to consider the outcome of their reform implementation.

“The chaotic and often self-inflicting posturing of the Central Bank in handling the banking sector reforms showed a complete lack of direction and focus in the whole exercise”

“The BoG didn’t seem to have a clear strategy blueprint and implementation outcomes of the various elements of the financial sector. A very basic question such as what type of financial system they intended to achieve and the measurable indicators of the implementation outcome was not considered.”