We’ll reject GH¢2b GAT loan for struggling banks – Minority

• Posted on March 7, 2019
• by Ellsamwise King
• Comment

The Minority in Parliament on Thursday served notice it will reject a GH¢2billion loan for the rescue of some local banks under the Ghana Amalgamated Trust (GAT) Limited.

GAT is an arrangement of private pension funds to inject GH¢2 billion into supporting solvent and well-run indigenous banks, which were otherwise having difficulties meeting the Bank of Ghana’s new minimum capital requirement of GH¢400 million.

The banks are the merged Omni/Sahel Sahara Bank, Universal Merchant Bank, Prudential Bank, ADB and NIB.

Parliament is expected to give GAT a sovereign guarantee in order to raise the GH¢2billion required to bailout the five banks.

But speaking to the media Deputy Minority Leader James Klutse Avedzi argued GAT is an illegal entity and that the minority will reject the approval of sovereign guarantee for it in order to raise the GH¢2billion.

“We don’t know what is GAT. Ghana Amalgamated Trust Limited, is it a company? Established by who? Parliament knows nothing like that. So, why do you introduce a company that is alien to Parliament for Parliament to work for us to give a sovereign guarantee for that company to go and borrow?” he asked.

He continued: “What I mean by Parliament is not aware of is that, before the government can do anything of that nature it must be approved by parliament. Nothing has come to Parliament for approval.

“Here we have not established or given the authority to the government to establish any company for Ghana and why do you come to parliament asking parliament to give you approval for that company which Parliament has not given the approval to go and establish to give a guarantee to that company to go and borrow money.

“Parliament cannot give approval for a company we don’t know anything about to go and borrow.

“We will not support this. How do we do such a thing?”