The Bank of Ghana (BoG) has unveiled a new regulatory framework aimed at tackling deliberate loan defaults and reducing the impact of non-performing loans (NPLs) on the financial sector.
Under the directive, announced on August 13, borrowers who intentionally refuse to settle debts, misuse loan proceeds, or use fraudulent documents and collateral to secure credit risk being denied access to new loans for extended periods.
According to the BoG, all licensed banks and financial institutions must publish the names of such defaulters twice each year on June 30 and December 31 in at least two national newspapers and on their official websites.
The sanctions will apply not only to individual borrowers but also to company directors, guarantors, and associates found complicit in fraudulent practices or in the diversion of loan funds.
Once a debt is written off with central bank approval, the affected borrower will be excluded from formal credit facilities for a period equal to twice the time between the write-off approval and the eventual repayment.
Persistent offenders, particularly those cited more than once within a ten-year period, will face a minimum ban of five years, with the duration extended depending on the severity of the default and the repayment timeline.
To regain eligibility for credit, defaulters must fully repay outstanding amounts, settle all related charges, clear their status with credit bureaus, and demonstrate genuine repayment capacity.
The BoG said the measures are designed to strengthen credit discipline, restore lender confidence, and safeguard the profitability and liquidity of Ghana’s banking industry.
