No directive to DKM Microfinance not to pay interest on deposits – BoG

8915016699737_5647213553854The Bank of Ghana has denied directing Sunyani-based Micro-finance Company, DKM Diamond not to pay interest on customer deposits.

The company last week re-opened its operations to the public after a 120-day moratorium by the BOG to enable it pay off customer-deposits.

Some customers have however, been upset after months of waiting, saying they have been denied interests on their deposits – a decision the company says is a Bank of Ghana-directive.

But speaking with Joy Business, Head of Other Financial Institutions Supervision Department of the BoG Raymond Amanfo said that cannot be the Central Bank’s directive.

“We cannot just direct them not to go by the agreements that they themselves have entered into. But it’s a matter between them and their clients” he emphasized.

What the Central Bank has done he stated, is “defreeze their accounts. We have also released the funds that were seized from them because of the moratorium. That was done on the 18th of September.”

Mr. Amanfo added that DKM Diamond has been directed to pay all liabilities to its clients and they are not to take any fresh deposits.

“They have to satisfy every liability that has accrued in their books because we don’t know the kind of terms and conditions they have gone into with their clients” he stressed.

The Central Bank on 11th May 2015 placed a 90-day moratorium on the operations of DKM after it was found culpable of operating outside the banking regulations.

The freeze was however, extended by 30 days to afford the company the opportunity to streamline its operations and to protect customer deposits.

source: myjoyonline.com

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