Ghana’s banking sector is facing a new and unsettling challenge — the alarming rate of loan defaults by medical practitioners who have relocated abroad.
According to John Awuah, Chief Executive Officer of the Ghana Association of Banks (GAB), several local banks are grappling with non-performing loans (NPLs) caused by doctors who secure personal loans and later abandon repayment once they migrate to other countries.
Mr. Awuah revealed that the situation has reached such concerning levels that the banking industry has initiated discussions with the Ministry of Foreign Affairs to explore diplomatic avenues to recover the outstanding debts. “There are processes we are going through with the Ministry of Foreign Affairs to contact the diplomatic corps since you don’t just wake up and write to them,” he said.
The revelation paints a troubling picture of a moral and financial integrity crisis, one that involves professionals long regarded as paragons of responsibility and ethics.
A Growing Concern Within the Banking Sector
The Ghanaian banking industry, still recovering from the 2017–2019 financial sector clean-up, now faces a new wave of credit risks, this time from an unexpected group. According to Awuah, the doctors in question often obtain personal loans ranging between GH¢120,000 and GH¢150,000 using their bank statements as proof of financial capacity before applying for travel visas.
“They have bank accounts. They use your bank statements. They have personal loans. The bank will not ask you exactly what you are going to buy since it is a personal loan. They will come to a bank, take like GH¢120,000 or GH¢150,000, take a visa and jump off and leave the loan hanging.”
John Awuah
This practice, he said, has significantly contributed to the rising level of non-performing loans, undermining the trust and stability of Ghana’s banking ecosystem.
What makes the situation more disappointing, Awuah noted, is that these cases involve medical doctors — individuals society holds in high moral and professional esteem. “About 70% of them are not paying. These are medical doctors, people we hold in high esteem,” he lamented.
Many of these doctors, he said, are fully employed in foreign hospitals and earning decent wages. Yet, they have shown reluctance to fulfill their financial obligations back home.
“Wherever they are going, they are working there and earning, and one would think that as medical practitioners, they will just say, ‘I have a liability in Ghana, which enabled me to demonstrate that I can fund my travel, so let me come and settle.’”
John Awuah
The revelation has sparked debate about ethics, patriotism, and financial responsibility, especially among Ghana’s educated professionals who benefit from the nation’s educational and financial systems but later turn their backs on local institutions.
Diplomatic Channels Activated
To address the situation, banks have begun formal engagements with the Ministry of Foreign Affairs. Awuah disclosed that a letter has already been lodged with the Ministry, seeking its support in reaching Ghanaian doctors abroad through the appropriate diplomatic channels. “We’ve already started; there’s a letter that is logged at the Ministry of Foreign Affairs, which is trying to achieve that, but that is a reactive mechanism,” he explained.
The banks are hopeful that with the Ministry’s intervention, embassies and consulates can play a role in tracing these defaulting professionals and reminding them of their contractual obligations. The Ghana Association of Banks is also exploring long-term preventive measures to mitigate future occurrences.
One of the more proactive proposals on the table involves requiring visa applicants to obtain bank clearance before their travel applications are approved. “At some point, we were even attempting to write to the embassies to seek clearance from banks before they would allow visa processes to go through,” Awuah revealed.
This measure, if implemented, could help identify individuals with outstanding loan obligations and ensure accountability before they leave the country. However, such a system would require extensive coordination between banks, government agencies, and foreign missions — a complex process that demands time and diplomatic sensitivity.
Impact on Banking Stability and Credit Confidence
The rise in loan defaults among professionals poses a dual threat — it weakens banks’ asset quality and erodes public confidence in credit systems. Ghana’s banking sector has worked hard to rebuild trust after the consolidation of nine insolvent banks and several savings and loans institutions during the sector clean-up.
Non-performing loans already pose a structural challenge to banks’ profitability, and this emerging trend among professionals risks amplifying those vulnerabilities. Industry analysts warn that if unchecked, such practices could compel banks to tighten personal loan conditions, making credit less accessible to honest borrowers.
Mr Awuah emphasized that the industry’s intention is not to shame individuals but to uphold integrity and accountability. He described the situation as “morally disappointing” and called on professionals abroad to demonstrate responsibility toward their homeland.
The Ghana Association of Banks hopes that through continued collaboration with the Ministry of Foreign Affairs and other relevant institutions, a sustainable framework will emerge — one that ensures those who benefit from the financial system remain committed to repaying their debts, regardless of where they reside.
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