The Bank of Ghana (BoG) has hinted that it will appeal a Court of Appeal ruling directing the Central Bank to reverse the revocation of the license of Savings and Loans Company, UniCredit in 2019.

The Bank of Ghana indicated that it has instructed its lawyers to appeal the decision in the interest of promoting financial stability in the country.

The Court of Appeal in its ruling yesterday July 7, described the Bank of Ghana’s decision to revoke the license of UniCredit as wrong because the regulator did not go through the right procedure in taking the action.

Meanwhile, the Bank of Ghana has since asked the Receiver of UniCredit to continue to perform his statutory functions while appeal processes are filed by the Central Bank.

By the ruling, the Court of Appeal reversed the earlier decision of the Human Rights Court dated 18th March 2021 which held that the Bank of Ghana followed the relevant laws and due process in revoking the license of uniCredit Ghana.

The Court of Appeal declared as unlawful the decision by the Bank of Ghana to revoke the license of uniCredit Savings and Loans.

In a unanimous decision, the Court quashed the revocation of the savings and loans firm’s license which was contained in the Bank of Ghana’s notice, dated 16th August 2019.

The decision of the Court of Appeal chaired by Justice Suubaareh with Justice Merley Afua Wood and Justice Janapare A. Bartels as panel members was delivered on Thursday, July 7, 2022.

The Human Rights Division of the Accra High Court presided over by Justice Gifty Adjei Addo had in 2020 dismissed an application for Judicial Review filed by HODA Holding against the Central Bank, following the revocation of the operating license.

Dissatisfied with the decision, lawyers of UniCredit filed an appeal against the judgment of the High Court, hence the latest verdict.

Meanwhile, Finance analyst, Toma Imihere, is worried about the reputation of the Bank of Ghana (BoG) after its decision to revoke the license of uniCredit Ghana Limited was overturned by the Court of Appeal.

“It is a dent on the Bank of Ghana’s credibility because it means they did not adopt due process.”
Toma Imihere

It can be recalled that the Central Bank, on Friday, August 16, 2019, revoked the licences of 23 insolvent savings and loans companies and finance houses including uniCredit, pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). This provision requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.

However, Hoda Holdings Limited, mother company of UniCredit, in a writ filed on Monday, August 19, 2019, sought an interlocutory injunction against the BoG from interfering with its operations pending arbitration.