Unicredit Savings and Loans Ltd. parent company Hoda Holdings Ltd. has sued the Bank of Ghana and Governor Ernest Addison for revoking the savings and loans firm's license due to insolvency, Joy Business reported.
In an affidavit filed with the human rights division of Ghana's High Court, Hoda Holdings said over 54 million cedis of its funds were locked with Unicredit Savings and Loans prior to the central bank's decision to stop the company's operations in 2018, and that it has since been seeking to retrieve the amount.
Unicredit Savings and Loans' shareholders previously said efforts by the company's board and management to recover the funds were unsuccessful, the news agency noted.
The shareholders also said Unicredit Savings and Loans complied with the Bank of Ghana's order to reduce its exposure to uniSecurities, which was a core reason for the revocation of its license, and that the company had always cooperated with the central bank to come up with solutions related to liquidity challenges and other regulatory requirements.
The central bank recently revoked the licenses of 23 insolvent savings and loans companies and finance house companies, including Unicredit Savings and Loans, saying the firms remained insolvent despite being given "a reasonable period" to be recapitalized by their shareholders to return them to solvency.
As of Aug. 21, US$1 was equivalent to 5.28 Ghanaian cedis.
