Banks that made significant progress in their recapitalization plans have been permitted by the Bank of Ghana to distribute interim dividends, the Governor of the Bank of Ghana, Dr. Ernest Addison has revealed.
This is coming following the impact of the Domestic Debt Exchange Programme on their operations.
According to the Governor, banks with stronger capital positions have been allowed to pay interim dividends.
This decision, he however said, is taken on a bank-by-bank basis to ensure that only those with robust capital positions are permitted to do so.
Speaking at the recent Monetary Policy Committee (MPC) press conference, Dr. Addison pointed out that “Banks that made significant progress in their capital plans have been permitted to distribute interim dividends. It was essential to ensure that investors, particularly foreign investors, who have incurred losses due to currency depreciation, were adequately compensated for their investments in the banking sector”.
“Given these circumstances, banks with stronger capital positions have been allowed to pay interim dividends. This decision is taken on a bank-by-bank basis to ensure that only those with robust capital positions are permitted to do so”, he stated.
“Going forward, we will continue to evaluate each bank’s situation individually, and those that meet the necessary criteria will be allowed to resume dividend payments accordingly.”, he added.
This decision by the Bank of Ghana will come as a big relief to the shareholders of the banks.
Source: Myjoyonline
