“Can someone with a bad credit history be trusted to reform a country’s banking system?” – Kofi Amoah asks
Dr Kofi Amoah questions credibility of government officials
Ken Ofori-Atta failed to repay his loan to UT bank, Amoabeng books
UT bank collapsed due to insolvency issues
Ghanaian business mogul Dr Kofi Amoah has questioned the credibility of those who run Ghana’s economy.
According to him, a number of factors such as credit history and determination to repay debts owed must be carefully considered and challenged before these people become key responsibilities.
Reacting to a press article revealing how the current finance minister [Ken Ofori-Atta] in default for nearly four years on a loan contracted with a financial institution, Dr. Kofi Amoah wrote on Monday, December 13;
âAn important question: can someone with a bad credit history, unable to service their debt as agreed, be trusted to reform the country’s entire banking system? Or go into borrowing madness in the name of our country? ‘
âCharacter and a sense of judgment are essential! Dr Kofi Amoah wrote on Twitter.
Dr Kofi Amoah’s comments come after Ghanaian business mogul Prince Kofi Amoabeng explained how it took four years for current Finance Minister Ken Ofori-Atta to repay a loan from his late UT bank.
An important question:
Can someone with a bad credit history, unable to service their debt as agreed, be trusted to reform the country’s entire banking system? Or do a wave of loans in the name of our country?
Character and a sense of judgment are the key!
– citizen kofi amoah (@amoah_citizen) December 13, 2021
According to a report from MyJoyOnline revealing excerpts from the ordeal contained in a book written by the co-founder of UT Bank Dubbed; âThe Story of UT: Humble Beginnings,â he said.
âKen and his partner, Keli Gadzekpo, came to see me with their shares in Enterprise Insurance as collateral for a loan of around GH Â¢ 5 million. At the time, the cedi was renamed and renamed “New Ghanaian Cedi”. So the GH Â¢ 5 million he asked for was equivalent to around $ 5 million, âhe said.
Although the loan was over the single debtor’s limit at the time of their application, the UT bank boss said he felt pressured to comply with Ofori-Atta’s request because of their friendship.
âWe were really good friends, so I felt obligated, not without doing some due diligence. It was curious however that they did not prefer the banks where they would have obtained the loan at a much lower annual interest rate compared to our significantly higher monthly compound interest rates, âAmoabeng said.
“Anyway, after looking at their documents. I thought it was okay to give the loan. The only problem, and not insignificant, was that the amount exceeded the limit of the single debtor. Ideally, I should have declined their request immediately. Instead, I decided to bail them out, âhe said.
The UT bank boss also said that while the majority of his board members strongly opposed Ken Ofori-Atta’s request, he decided to help a friend in need.
But after the loan application was approved, Prince Amoabeng said things did not go as planned as Ken Ofori-Atta failed to deliver on his end of the bargain.
âUnfortunately, Ken did not honor his end of the bargain. He missed the repayment schedule. The situation was so bad they could only pay the interest on the loan,â he revealed. .
âI got worried because I had served on the board, I knew Ken very well and I had no doubt that he would honor his word. So I had the egg on my face, especially since my partner had expressly expressed his disapproval of the request, âread excerpts from the books.
The UT boss said that despite an extended grace period granted to Ofori-Atta to repay the said loan, it took him more than four years to repay his debt to the now defunct UT bank.
âWhen the problem persisted, I reduced the interest rate to about 3% per month, just so they could pay off their debt. Unfortunately, it took them over four years to pay. Even then, they kept it in chunks until they were finally able to pay, âthe book revealed.
UT Bank, prior to insolvency, was a non-bank financial services company providing lightning-fast lending to individuals, businesses, and others.