bad Credit

‘Can a person with bad credit history be trusted to reform a country’s banking system’? – Kofi Amoah asks

‘Can a person with bad credit history be trusted to reform a country’s banking system’? – Kofi Amoah asks
Written by Publishing Team

Dr. Kofi Amoah is a businessman and philanthropist Dr. Kofi Amoah is a businessman and philanthropist

Dr. Kofi Amoah questions the credibility of government officials

Ken Ofori-Atta defaulted on loan to UT Bank, Amoabeng book

UT Bank collapsed due to insolvency issues

Ghanaian business magnate, Dr. Kofi Amoah, has questioned the credibility of people dealing with the Ghanaian economy.

According to him, a number of factors such as credit history and the decision to service outstanding debts must be thoroughly investigated and questioned before these persons are handed the main responsibilities.

A reaction to a news article that reveals how the current Finance Minister is [Ken Ofori-Atta] Dr. Kofi Amoah wrote on Monday, December 13th, who has defaulted for nearly four years on a loan from a financial institution;

An important question: can someone with a bad credit history, unable to service their debts as agreed, be trusted to reform the country’s entire banking system? Or go on a borrowing spree in the name of our country?

“Character and sense of judgment are key!” Dr. Kofi Amoah wrote on Twitter.

Dr. Kofi Amoah’s comments come after Ghanaian business magnate, Prince Kofi Amoabeng, shared details of how it took the current finance minister, Ken Ofori-Ata, four years to pay off a loan from his bank that no longer has a presence in UT.

background

According to a MyJoyOnline report revealing excerpts from the ordeal contained in a book written by the dubbed UT Bank co-founder; “The Utah Story: Humble Beginnings,” said Ken Ofori-Ata, who requested a GW5 million loan to support his business, which was receiving terrible financial assistance at the time.

“Ken and his partner, Kelly Gadzikpoe, came to me holding their stakes in Enterprise Insurance as security for a loan of approximately £5 million. At that time, the Cedi underwent a rename and was rebranded as ‘New Ghana Sir’. His order was equivalent to about 5 million US dollars.”

Although the loan was above the single obligor limit at the time of his request, the UT Bank president shared that he felt obligated to agree to Ofori-Atta’s request because of their friendship.

“We were very good friends, so I felt compelled, albeit without doing the necessary due diligence. It was strange that they did not favor banks where they would have secured the loan at a much lower annual interest rate compared to the significantly higher monthly compound interest rates,” Amoabeng said. .

“Be that way after I went through their documents. I felt it was acceptable to grant the loan. The only hurdle, and most importantly, is that the amount exceeded the limit of the individual obligor. Ideally, I should have refused their application there and then. Instead, I decided to save them.”

The UT Bank president also said that although a majority of its board members were vehemently opposed to Ken Ofori-Atta’s request, he decided to help a friend in need.

But after approving the loan request, Prince Amwabang said things did not go as planned as discussed as Ken Ofori-Ata failed to meet his end of the deal.

“Unfortunately, Kane failed to meet his end of the deal. He fell so badly behind the repayment schedule. The situation was so bad that they could only serve the interest on the loan.”

“I was concerned because I assured the council, that I knew Ken well and was convinced beyond reasonable doubt that he would honor his word. And so, an egg was on my face, especially since my partner had openly stated his disapproval of the request,” excerpts from the books were read.

The UT president recounted that despite Ofori-Atta’s extended grace period to repay said loan, it took more than four years to pay off his debts to the now-defunct UT Bank.

“When the problem persisted, I lowered the interest rate to about 3% per month, just so they could settle their debts. Unfortunately, it took them over four years to pay. Until then, they maintained it in bits and pieces until they could finally pay off. The book revealed.

UT Bank, prior to the insolvency, was a non-bank financial services company that provided ultra-fast loans to individuals, businesses, and others.

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