Ghana: Microfinance Institutions Resolve to Charge COT on Deposits from October

Sep 2014
Ghana, September, 18 2014 - Clients of Microfinance institutions will from next month be paying cost of transaction charges popularly referred to as COT on their deposits. This is according to the umbrella body, the Ghana association of microfinance companies (GAMC).

Speaking on the ultimate morning show, its Board Chairman, Collins Amponsah emphasized that the decision was reached in consultation with heads of all microfinance companies at its last meeting in the Ashanti Region.

He indicated that the objective is to raise some revenue to cater for rising operational cost of their institutions.

He explained, “if you are taking deposits then you have savings accounts and it makes no economic sense if we keep those accounts and generate no returns on them while we use other depositors’ monies to serve the clients.”

Mr. Amponsah stressed that, “they are doing a service and you will have to pay for that service and that is the only way your bank can be there to serve you and to secure your investment with them.”

Mr. Collins Amponsah further indicated that the microfinance industry is undergoing a redefining period to ensure the frequent cases of collapse in its fold are curbed.

He divulged that the GAMC will next week launch a research report on what culminated in the collapse of several Microfinance Companies within the years 2012 and 2013.

He expressed satisfaction that even though the year 2014 has been tough economic wise; the spate of collapse of MFIs has drastically died down.

He is optimistic the upcoming report will further strengthen the forts of the industry to become more sustainable.

Source : Modern Ghana

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