The Institute of Economic Affairs (IEA) has kicked against the government’s decision to pay a hundred percent depositors locked up funds after the financial sector clean-up.
They believe that the decision was not the best for the country since it will have serious economic implications going forward.
The President during the State of the Nation’s Address last week announced the government’s decision to pay in full the locked-up funds of customers who lost their monies during the financial sector clean-up.
But speaking at a press conference to digest the president’s address, the Director of Research at the IEA, Dr John K Kwakye stressed that, it would have been better if the president had taken over 70% of the money and allow the management of the banks also take responsibility of the rest to reduce the burden on the government’s budget.
He also suggested that the surviving banks should have also been made to financially support the government to raise enough money to clear the depositors locked up cash.
Dr Kwakye opined that the government could have maintained some of these collapsed banks and rather change the management which he believes could have sustained the indigenous hands in the business and also would have saved numerous jobs and deposits.
By: Samuel Opoku / Kingdom 107.7 FM / Kingdom TV/ Kingdomfmonline.com / Ghana / 2020