[ 2014-09-18 ]

Microfinance Institutions Resolve To Charge COT On Deposits From October
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 - Ultimate Radio, Kumasi

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