Closure of financial institutions chaotic and national security threatening – Mahama

Former President John Mahama has described as chaotic and national security threatening the Bank of Ghana collapsing 20,000 direct jobs in the country.

According to him, the Central bank’s move of a clean-up exercise of the financial sector, which saw the revocation of licences of 420 banks, microfinance institutions and other finance houses was bad.

“About 20,000 people have lost jobs directly due to the 420 financial institutions that have been shut down,” Mahama said.

In a Facebook live interaction with Ghanaians on the state of the country under President Nana Addo Dankwa Akufo-Addo, he said about 40,000 to 50,000 Ghanaians have lost their jobs.

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“We have not even added the indirect jobs… By the time we do, the total calculation, about 40,000 to 50,000 people may have lost their jobs,” he added.

“The crisis has created major problems in the banking sector and financial sector including deepening the already widely-held mistrust and lack of confidence in the system by Ghanaians.

“While this development appears to be a threat to only the businesses that have been shut down, it is, in fact, a threat to our national security,” Mahama said.

He stressed that “The development in the banking and finance system and the matters arising call for grave concern on all who have been affected by this financial sector turmoil, especially because it is an issue that threatens the country’s security.

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“Was the revocation the best option at this circumstance or there was no option? Our central bank chose the chaotic situation with accompanying huge debt where the government has no clue on how to clear it.

“Revocation of licences would have been the last resort and not the first resort. No country is immune to crisis in the financial sector.”