Court dismisses BoG application to halt Unicredit revocation case

The Accra High Court has dismissed an application by the Bank of Ghana seeking to halt the hearing of a case against it by HODA Holdings Limited.

HODA Holdings has challenged the revocation of the license of one of its subsidiary companies, uniCredit Savings and Loans.

But the Central Bank had argued that the court lacked jurisdiction to hear the action instituted by HODA Holdings.

The court, presided over by Justice Gifty Agyei, dismissed the application on Tuesday.

The court, in its ruling, said the application was dismissed because the applicant, BoG, had not demonstrated the irreparable damage it will suffer should the respondent (applicant) HODA Holdings succeed.

The court has since given the BoG, who are yet to file their statement of case on the substantive matter, 14 days to do so.

The dismissal of this application has paved the way for the hearing of the substantive case filed by HODA Holdings.

The hearing of the substantive case has been adjourned to June 23, 2020.

The BoG, in August last year, revoked the licences of uniCredit and 22 other savings and loans companies for being insolvent.

The central bank also revoked the licences of two financial institutions.

The revocation of the licences of these institutions, according to the central bank, had become necessary because they were insolvent even after a reasonable period.

It was the bank’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.