uniCredit sues BoG over revocation of licence

Source The Ghana Report/Gloria Kafui Ahiable

The parent company of uniCredit, Hoda Holdings, has sued the Bank of Ghana (BoG) for revoking its licence.

The shareholders, in a writ filed before the Human Rights Division of the High Court on Monday, August 19 prayed the court to quash the action of the central bank.

It noted, “Hoda Holdings Limited, the mother company of uniCredit, is seeking an order of interlocutory injunction restraining the respondents, their agents, assigns, privies hirelings or otherwise howsoever described, from interfering with the operations of uniCredit Ghana Limited and to refer the subject matter of the instant application to arbitration.”

Last week, the Bank of Ghana revoked the licence of uniCredit, together with those of 22 other Savings&Loans and Finance Houses.

In the case of uniCredit, investigations conducted by BoG revealed that the company was overexposed to a related party, Unisecurities Limited.

The overexposure had resulted in severe liquidity challenges and its inability to meet withdrawal requests of customers.

uniCredit Savings & Loans Limited was therefore  found to be insolvent with a negative capital adequacy ratio and negative net worth following the Bank of Ghana’s assessment as of December 2018 hence the revocation of the license.

Find below the writ as issued by the court

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