The Bank of Ghana (BoG) has granted permission for banks that have made significant progress in their recapitalization efforts to distribute interim dividends to shareholders.
This decision follows the cessation of dividend payments by banks for two years per the directive of the BoG following the impact of the Domestic Debt Exchange Programme on the banks’ operations.
According to Dr. Addison, only banks with strong capital positions would be allowed to make dividend payments.
“Banks that made significant progress in their capital plans have been permitted to distribute interim dividends,” he stated, emphasizing the need to compensate investors, particularly foreign investors who have suffered losses due to currency depreciation.
The Governor highlighted that the decision is made on a bank-by-bank basis, ensuring that only banks with robust capital positions are permitted to distribute 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 explained.
He further assured that the BoG would continue to assess each bank’s situation individually, allowing those meeting the necessary criteria to resume dividend payments.
“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 move by the Bank of Ghana is expected to provide significant relief to shareholders.
Source: Norvanreports