The Ghana Association of Savings and Loans Companies (GHASALC) has attributed the consistent increase in Non-Performing Loans (NPL) to public sector workers who take loans, refuse to pay and travel outside the country.
The Executive Secretary of the association, Tweneboah Koduah Boakye said the situation is causing difficult operational challenges to savings and loans companies.
Speaking to Joy Business at the 14th Annual General Meeting of the association, he indicated that despite the successes chalked by some of its members, a sizeable number of them are e facing liquidity issues.
"What we have realized is that some people will come to us and they are teachers, nurses, doctors or work in the government sector. They want loans and they qualify so we give it to them, but immediately after taking it, they leave the country. We are now constantly monitoring these people because they are part of the non-performing loans issues we have been facing", he said.
Mr. Koduah Boakye further called on various embassies in the country to help the association track the workers when exiting the country.
He explained that, government workers traveling abroad must be checked for a good credit report before granted visas.
"We want to suggest to other stakeholders especially the embassies that if someone is a government worker and relocating to a different a country, there should be an evidence that you don't owe and if you owe, there should be evidence that you have made reasonable provisions with your company", he added.
The association said it will be forced to stop granting loans to public sector employees if the act continues.
Latest Stories
-
Galamsey: Current effort doesn’t match the scale of crisis – Kenneth Ashigbey
9 mins -
I fasted and prayed for days – Ama K. Abebrese recounts how she got ‘Beast of No Nation’ role
30 mins -
Societe Generale Ghana unveils “Home Sweet Loan” mortgage product
34 mins -
Rebuttal to article on ECG’s compliance with the Cash Waterfall Mechanism
41 mins -
Money lost through fraud cases in financial sector increased by 7% in 2023 to hit GH¢88m –BoG
51 mins -
Not all packaged water is wholesome – Water Resource Engineer
59 mins -
NDC demo against EC: About 20k people expected to participate in V/R – NDC Regional Secretary
1 hour -
UBA’s REDTV premieres ‘13 Kinds of Women’ live on YouTube on Sept. 19
1 hour -
Water conflicts in Africa surge by 153% over five-year period
1 hour -
Akufo-Addo reaffirms commitment to supporting public-private enterprises
1 hour -
Illegal mining: Very soon we’ll see half human beings walking around – Pathologist warns
1 hour -
Amerado announces second edition of ‘My Motherland Concert’
1 hour -
Guinness Ghana DJ Clinic educates DJs in Accra on business strategies
2 hours -
Sebastian Coe, Kirsty Coventry and five others file to contest IOC Presidency
2 hours -
NDC, NPP members clash at Gomoa West over DRIP machines commissioning
2 hours