UNIBANK RECAPTILIZATION; SHAREHOLDERS TO INJECT 7.1 BILLION CEDIS

Dr. Kwabena Duffour, a shareholder of uniBank Ghana Limited has, on behalf of the shareholders of the bank, reaffirmed their commitment to recapitalize the bank to address both the solvency and liquidity challenges of the financial institution. The Founder of the House of Duffuor and Associates disclosed, shareholders are ready to progress discussions on the appropriate structure to handle and leverage the assets of the bank registered with the name of shareholder, House of Duffour Assets. In a letter signed by Dr. Duffour in response KPMG, he said the shareholders, led by Duffour, affirmed their readiness to accept one of the 3 strategic options to save the bank as proposed by the Official Administrator of the bank, KPMG to the government.

The three options are entitled ‘Good banks/Bad banks’, ‘Recapitalization by existing shareholders with or without new shareholders’, and ‘Recapitalization by new shareholders’. With the total deficit pegged at GHC 4.9 billion, shareholders accepted the option of recapitalizing uniBank to the tune of 7.1 billion cedis far in excess of its deficit.

Prior to the shareholders forwarding this document to KPMG informed the existing shareholders that there existed a gap of GH₵4.9 billion required to address both insolvency and liquidity challenges of the bank.

On July 12 2018, Dr Duffour who is the former Minister of Finance, former Governor of the Bank of Ghana and a shareholder of uniBank, signed a letter to KPMG expressing his and the shareholders’ commitment to recapitalize uniBank.

The BoG, effective March 20 this year, appointed KPMG as Official Administrators of uniBank to assume managerial control of the bank consequently suspending the powers, functions and responsibilities of the shareholders, directors and key management.