Ministry Of Finance And SEC To Bailout Databank And Others

1. On the 21st December 2022, Databank Group released a statement announcing the closure of their offices nationwide effective 22nd December 2022 to 10th January 2023 due to attacks on their staff arising out of their inability to honour withdrawal and redemption obligations from customers.

2. The company also hope to resolve their challenges before the 10th January in order to have a conducive work environment for their staff.

3. The company which attributed their cash trap situation to the recently announced restructuring of the domestic bond market by the government, has their former boss and/or major shareholder, KEN Ofori-Atta, as the minister of finance of the government.

4. In the circular announcing their woes, the statement made a categorical reference to how they intend to solve their problems with the help of the ministry of finance and the Security and Exchange Commission (SEC).

5. The press release mentioned that “we are currently engaging with the ministry of finance, our regulator (the Securities and Exchange Commission (SEC)) and the Ghana Securities Industry Association regarding the impact of the debt exchange on Databank’s mutual funds as well as other Collective Investment Schemes. As part of these discussions, the SEC issued a notice to market operators (SEC/CIR/005/12/22) on December 9, 2022, indicating it’s intent to support the market with much-needed liquidity relief, including access to the Financial Stability Fund as the last resort.”

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