Ghana: Loan Defaulters Can Now Be Taken On Easily

Banking Consultant, Dr. Richmond Atuahene has said that the new order by the Bank of Ghana to banks and other financial institutions to explicitly catch their rights of enforcement under the Borrowers and Lenders Act will empower the moneylenders to arrange off defaulting customers’ collateral without bothering to pay off their loan, while assisting with decreasing Non-Performing Loans.

Dr. Atuahene who is backing the Bank of Ghana, has said obstinate borrowers wouldn’t have the option to underestimate banks any longer.

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The order by the Central Bank comes after it observed that some borrowers are unaware of lenders rights of enforcement under the Borrowers and Lenders Act.

As indicated by Dr. Atuahene, the Central Bank is assisting with further improving the banking system.

Dr. Atuahene further said:

“BoG wants lenders to include such laws and directives in letters to customers, so when they default in repaying their loans, they can be taken on easily. The Central Bank wants to help banks strengthen their position realisation of security in case of any default”.

Besides, the Banking Consultant made it known that the Bank of Ghana’s mandate would convey message to borrowers that moneylenders have the power to take them on when they default in reimbursing their loans.

The Borrowers and Lenders Act 2020 (Act 1052) is expected to promote and support the development of a fair, transparent, competitive and accessible credit market under Section 76 of Act 1052, as well as to ensure improved disclosure during the lending process.

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