BoG to blacklist wilful loan defaulters for up to 5 years
By Praisebell Rosemond Larbi
Wilful loan defaulters in Ghana could soon be barred from accessing credit for up to five years under new directives issued by the Bank of Ghana (BoG).
The central bank’s latest measures aim to curb the rise in non-performing loans (NPLs) and safeguard the profitability, liquidity and stability of the banking sector.
Under the new rules, all regulated financial institutions, including commercial banks, savings and loans companies and microfinance institutions are required to publish the names of wilful defaulters twice a year, on 30 June and 31 December.
These publications must appear in at least two national daily newspapers and on the institutions’ official websites, following a prescribed format issued by the BoG.
Who Qualifies as a Wilful Defaulter
According to the central bank, a borrower is classified as a wilful defaulter if they deliberately fail to repay a loan despite having the means to do so, divert loan proceeds for purposes other than those agreed upon, or secure credit using falsified collateral or fraudulent documents.
Credit Restrictions and Penalties
The directives prohibit regulated lenders from granting fresh credit to any borrower from the date the BoG approves a loan write-off. The restriction period will be calculated as twice the length of time between the write-off approval and full repayment of the debt.
Borrowers who are listed as wilful defaulters on two or more occasions within a ten-year period will automatically face a five-year ban from accessing credit. In cases where the calculated prohibition period exceeds five years, the longer duration will apply.
The measures also extend to directors of companies implicated in fund diversion, misrepresentation, falsified accounts or fraudulent transactions.
Restoring Credit Access
A wilful defaulter can regain eligibility for credit only after settling all written-off debts and associated fees in full, and upon convincing the lender of their capacity and willingness to meet future repayment obligations.
Stricter Prudential Limits
The BoG has also introduced enhanced prudential requirements, directing banks and other regulated lenders to reduce their NPL ratios to a maximum of 10 percent by the end of 2026. Microfinance institutions must maintain their current limit of 5 percent. From 1 January 2027, institutions exceeding these thresholds will be prohibited from paying dividends, awarding bonuses or expanding their loan portfolios until compliance is achieved.
