Breaking News
Investing Pro 0
Final hours: unlock premium data with Claim 60% OFF

National Investment Bank of Ghana faces potential restructuring amid liquidity concerns

Published Sep 28, 2023 23:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

The National Investment Bank (NIB) of Ghana, currently grappling with liabilities exceeding GHc2 billion, is facing calls for significant restructuring to avert its potential liquidation. The Minority in Parliament has urged the government to intervene, emphasizing the systemic importance of NIB and the consequences of its collapse.

Isaac Adongo, the Ranking Member of Parliament’s Finance Committee, voiced his concerns during a press conference held on Thursday. He proposed that the government restructure NIB’s balance sheet by converting all NIB debts owed to the government into equity. Adongo questioned the government's decision to consider liquidation, suggesting that hidden motives may be at play. He offered that the Minority could provide a team of experts to work independently and without interference to revitalize NIB.

Recent reports have indicated that the Agricultural Development Bank (ADB) is considering acquiring NIB. However, Dr. Richmond Atuahene, a banking consultant, warned against such a merger in their current states, as ADB may not have the capacity to take over NIB, which has been struggling for about six years now.

In July 2023, the Bank of Ghana (BoG) was in discussions with the government to assess the viability of NIB. The talks are expected to conclude next year and will determine NIB’s fate. Under the IMF program, BoG has committed to addressing the insolvency of NIB and under-capitalization of several special deposit-taking institutions (SDIs).

Following financial sector reforms, all banks operating in Ghana successfully recapitalized to GH¢400 million, except for NIB. The bank was given a government guarantee through the Ghana Amalgamated Trust (GAT), designed to help five banks recapitalize. However, NIB failed to utilize this opportunity due to its liquidity and capital challenges.

The Minority in Parliament has also affirmed that it will only support the approval of the $250 million World Bank facility for the financial stability fund if priority is given to struggling state banks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

National Investment Bank of Ghana faces potential restructuring amid liquidity concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email