CDH Savings and Loans license reinstated after court ruling

Accra, Ghana - November 1, 2024 - An Accra High Court has overturned the Bank of Ghana's 2019 decision to revoke the operating license of CDH Savings and Loans Company Limited.

The court ruled that the Bank of Ghana's approach was unfair and ordered both parties to resolve the issue through arbitration.

This decision comes after CDH Financial Holdings Limited, the company's shareholders, challenged the Bank of Ghana's decision in court, citing procedural unfairness and seeking to prevent further disruption to its operations until arbitration.

The Bank of Ghana had originally revoked CDH's license on August 16, 2019, citing liquidity issues stemming from the company's failure to sell repossessed collateral, which led to an inability to meet withdrawal demands from depositors.

However, the court deemed the Bank of Ghana's two-week deadline for CDH to liquidate assets and address its liquidity challenges as "unreasonable and unfair".

Source: Lead News Online