A new directive from the Bank of Ghana (BoG) states that wilful loan defaulters will be barred from accessing credit for up to five years.
The central bank explained that this new directive is aimed at curbing the rising number of non-performing loans (NPLs) and protecting the stability of the financial sector.
This measure targets borrowers who deliberately refuse to repay loans despite having the means. It also applies to those who divert funds for unauthorized purposes, secure credit with falsified documents, or submit fraudulent collateral.
The bank has indicated that all commercial banks and regulated lenders must publish the names of such defaulters twice a year—on June 30 and December 31—in at least two national newspapers and on their websites.
Who is a willful defaulter
A borrower is deemed a wilful defaulter if they fail to repay a loan despite possessing the capacity to do so, misappropriate loan funds for alternative purposes, or secure a loan through falsified collateral or fraudulent documentation.
A borrower is classified as a wilful defaulter if they misutilise loan funds for unauthorised purposes, secure credit using falsified collateral or fraudulent documents, or simply refuse repayment despite possessing the resources to do so.
Upon the central bank’s approval of a loan write-off, the borrower will be barred from accessing all regulated credit facilities for a period equivalent to twice the duration between the write-off approval and the debt’s full settlement.
Repeat offenders, specifically those named twice or more within a decade, will automatically face a five-year ban, or longer if the calculated prohibition exceeds that term. Sanctions will also extend to company directors, guarantors, and associates found to have aided in fraudulent conduct or the diversion of funds.
Defaulters must repay all outstanding debts and fees, clear their record with credit bureaus, and demonstrate a credible repayment capacity to regain access to credit.
The BoG states that the directive, issued to all regulated financial institutions on August 13, is part of its broader effort to strengthen credit discipline, enhance lender confidence, and safeguard banking sector profitability and liquidity.
By: Rainbowradioonline.com/Ghana
