Capture your rights of enforcement in credit, collateral agreements – BoG tells lenders

BoG claims some borrowers are unaware of lenders rights of enforcement

BoG directs implementation of Borrowers and Lenders Act to ensure transparency

Lenders advised to adhere to new directive

The Bank of Ghana (BoG) has directed all lenders to ensure that their rights of enforcement under any credit and collateral agreements are included in all lending transactions.

This, the central bank says, is in tandem with provisions under the Borrowers and Lenders Act 2020 (Act 1052).

Secretary of BoG, Sandra Thompson, in a statement said, BoG has observed that some borrowers were unaware that lenders had rights of enforcement under the Act.

"Act 1052 provides a regime for the rights and obligations of borrowers and

lenders. Specifically, Section 59-75 enumerates the process for the repayment

and recovery of debts," parts of the statement read.

It, however, said in a bid to ensure full disclosure during lending, BoG has decided to enforce Section 76 of the Borrowers and Lenders Act 2020 which deals with a fair, transparent, competitive and accessible credit market.

BoG has consequently advised all lenders to act in accordance with the new directive.

Read the statement from BoG below