Under the leadership of Governor Dr. Johnson Asiama, the Bank of Ghana (BoG) has issued a directive imposing severe sanctions on wilful loan defaulters, effective August 13, 2025. Borrowers who flagrantly refuse to honour their loan obligations despite possessing the means, or those who engage in egregious acts such as misappropriating funds, securing credit with falsified documents, or submitting duplicitous collateral, will face stringent repercussions.
A borrower is deemed a wilful defaulter if they recklessly divert loan funds for unauthorised purposes, secure credit using forged collateral or fabricated documents, or obstinately refuse repayment despite possessing the resources to do so. Upon the central bank’s approval of a loan write-off, the borrower will be proscribed from accessing regulated credit facilities for a duration equivalent to twice the period between the write-off approval and the debt’s full settlement.
Recidivist borrowers, those who have been named twice or more within a decade, will automatically incur a five-year ban, or a longer duration if the calculated prohibition exceeds that term. The sanctions will also extend to company directors, guarantors, and associates found to have facilitated fraudulent conduct or the misappropriation of funds.
To restore their creditworthiness, defaulters must settle all outstanding debts and fees, expunge their record with credit bureaus, and demonstrate a credible capacity for repayment.
The BoG’s directive aims to bolster credit discipline, enhance lender confidence, and safeguard the profitability and liquidity of the banking sector.
All commercial banks and regulated lenders are mandated to publish the names of wilful defaulters twice a year, on June 30 and December 31, in at least two national newspapers and on their websites. This measure is designed to promote transparency and accountability within the financial sector, thereby fostering a culture of responsible borrowing and lending.
The BoG’s directive represents a significant stride towards promoting fiscal responsibility and protecting the integrity of Ghana’s financial system.Cocksurely,by imposing stringent sanctions on wilful defaulters, the central bank seeks to safeguard the economy and the Ghanaian people, ultimately contributing to the country’s economic prosperity.
