The Bank of Ghana (BoG) says the deposits of customers of the nine banks whose licences were revoked as a result of the financial sector cleanup, have been paid to them.

However, there Central bank said it was in the process of settling outstanding payments of all depositors of the Specialized Deposit-taking Institutions (SDIs) that were closed down during the exercise.

Dr Ernest Addison, Governor of the BoG disclosed this when President Nana Addo Dankwa Akufo-Addo called at the Central bank on Tuesday.

The President was there to acquaint himself with the workings of the Bank.

Apprising the President on the banking sector cleanup, the BoG Governor said the first phase of the exercise involved the revocation of licenses of nine banks, for which all depositors were paid in full.

“The second phase has to do with the SDIs – these are the savings and loans, microfinance institutions and finance houses. In their case, for individual depositors who have been fully paid, the data that we have suggests that more than 95 percent of depositors have been fully paid,” he said.

“So there are just about five percent depositors who have large amounts, these are the high net worth individuals that were settled with loans which were to be retired over five years. So, we think that most of it has been done,” he said.

Dr Addison also disclosed that the deposits of customers of GN Savings and Loans and First Allied Savings and Loans, had also been paid over the past three weeks.

“The Government has provided a bond worth GH¢1.7 billion, for which we have monetized GH¢700 million. So, the receiver is also working at clearing the last few customers that are left in that segment.

"So, I think that we have made a lot of progress, Mr. President, with this depositor issue,” he said.

Mr Addison said the BoG had put in place a raft of mechanisms to prevent the recurrence of the banking crisis to ensure the maintenance of a strong banking sector in the country.

He praised the President for the role he played in sanitizing the financial space, which has raised confidence in the sector.

“Your clear leadership and understanding of the role of the financial sector in the government’s transformation agenda, gave the leadership of the Bank the confidence and courage to embark on the comprehensive banking sector reforms over the last three years," he noted, adding that those efforts have resulted in a stable financial sector that would be better able to support Ghana's economic growth agenda.

President Akufo-Addo on his part applauded the Bank's pivotal role in the success of his administration's economic policies over the past three and half years.

"I think that the measures that have been taken, the soundness of the measures and your own personal commitment to ensuring a stable macro-economic and generally clear business environment for our country has been extremely useful in supporting the work of my government," he said

President Akufo-Addo also commended the BoG for its handling of the banking crisis that nearly crippled the financial sector, and also for its support to the government, the economy and businesses during the disruptions of the COVID-19 pandemic.

He assured that government would give the BoG all the support it needs to keep the country's economy on a sound and solid basis.

The President was emphatic that there had been need for drastic measures to sanitize the country's financial sector to save it from collapse.

He was not enthused about accusations that were being directed at government for saving the sector by persons who themselves were responsible for the situation in the first place.

The President said it was ironic that the offenders in the whole saga were "pointing accusing fingers at those of us who are trying to clean up the mess."

"But that is the way of things, those things never bother me too much because I understand the need for politicians to agitate," because the cleanup exercise has put the country on a strong financial footing.

The President also thanked the Bank for the outstanding support it had given government and businesses during the disruptions of the COVID-19 pandemic.

Already, he noted, there were signs that government's economic plan was picking up again and "we are witnessing a revival of confidence in the economy.... and that can only be for the good of everybody in our country."

"We need to do whatever is necessary to make sure that it continues".

The President urged the bank to play its role to ensure the success of the African Continental Free Trade Area (AfCFTA) that had the potential to change the economic fortunes of Ghana and the African continent as a whole.

He assure that government would give the bank all the support it needed to play its critical role in maintaining a stable and thriving economy.