The Minority Members of Parliament wondered why the government would not capitalise the banks but was rather relying on another body to support the banks.

They said such an arrangement would allow the private entity to take over the ownership of the local banks with its 30 per cent stake.

Again, the Minority Members said the government had failed to provide the agreements signed by the Board of Directors and shareholders of NIB and ADB supporting the use of the SPV.

The Minority members also argued that managers of local banks had requested the government to give them time to raise the GHc400 million minimum capital requirement which had been increased from GHc120 million but the government declined.

Responding, the Minister of Finance, Mr Ken Ofori-Atta said the SPV was an attempt by the government to support local banks to be competitive in the banking industry.

He denied that the arrangement would give out the local banks to a private entity.

 

Source: Graphic