The government is developing a policy framework to regulate the use of unclaimed balances in dormant bank accounts to support national development while safeguarding the rights of account holders, the Minister for Finance, Dr Cassiel Ato Forson, has announced.
The policy, currently under review by the Ministry of Finance, will draw on international best practices to ensure that dormant financial assets are managed transparently and in the public interest without compromising ownership rights.
A speech delivered on behalf of the Minister by the Coordinating Director (Technical) at the Ministry of Finance, Mr Samuel Akhurst, at the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana and Bank of Ghana (BoG) Non-Performing Loans (NPLs) Forum in Accra, said the government was committed to developing a robust legal and governance framework tailored to Ghana's circumstances.
The forum was held on the theme: "Financing Distressed Companies: The Impact of Non-Performing Loans (NPLs), IFRS 9 Standards and Prudential Regulations on Post-Commencement Financing for Distressed Companies under Rescue and Possible Interventions."
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Dr Forson said the proposed policy would be guided by three key principles: the protection of ownership rights, transparency and accountability in the management of dormant assets, and the effective use of eligible dormant funds strictly in the public interest under strong legal safeguards.
He said the government recognised the growing global interest in making productive use of dormant financial assets while ensuring that rightful owners could reclaim their funds at any time.
"The government is committed to an inclusive consultative process involving regulators, financial institutions, insolvency practitioners and other professional bodies to ensure that the policy reflects the needs of all stakeholders," he stated.
Touching on the broader economy, Dr Forson said Ghana had made significant progress in restoring macroeconomic stability through fiscal discipline, prudent monetary policy and ongoing structural reforms.
He noted that inflation had declined considerably while exchange rate stability had improved, creating a more favourable environment for businesses and investment.
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The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, stressed the need for a stronger framework to support financially distressed but viable businesses without undermining financial stability.
He said although Ghana's Corporate Insolvency and Restructuring Act (Act 1015) provided legal backing for business rescue and post-commencement financing, banks still faced difficult decisions in determining whether distressed companies were capable of recovery.
According to him, lenders must undertake rigorous assessments based on credible financial information, sustainable cash flows and realistic restructuring plans before extending fresh financing.
Dr Asiama said the country's non-performing loans ratio had declined significantly but remained above the Bank of Ghana's target, adding that reducing bad loans was essential to expanding credit to the private sector and supporting economic growth.
He urged stakeholders to develop practical recommendations on how post-commencement financing could be structured, monitored and aligned with IFRS 9 and prudential regulations without weakening credit discipline.
The President of CIRIP Ghana, Mr Felix Addo, expressed concern that only five companies had sought formal business rescue since the insolvency law came into force, describing the number as disappointing.
He attributed the low uptake to limited awareness of the law, inadequate access to rescue financing and regulatory constraints affecting banks' willingness to support distressed businesses.
Mr Addo called for stronger institutional capacity, specialised insolvency courts and the establishment of a national distress fund to improve business rescue efforts and help preserve viable companies, jobs and investments.
