Wilful loan defaulters to face 5-year credit ban under BoG’s new rules
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has introduced tough new measures to tackle the growing problem of non-performing loans (NPLs), including a potential five-year credit ban for wilful loan defaulters.
Under the new directives, all regulated financial institutions, including commercial banks, savings and loans companies, and microfinance institutions, must publish the names of wilful defaulters twice a year on 30 June and 31 December.
These publications must appear in at least two national newspapers and on the institutions’ websites, using a standard format issued by the BoG.
Who is a Wilful Defaulter?
According to the Bank of Ghana (BoG), a wilful defaulter is a borrower who deliberately fails to repay a loan despite having the means to do so, diverts loan funds for purposes other than those agreed upon, or secures credit using falsified collateral or fraudulent documents.
Credit Restrictions and Penalties
Once the BoG approves a loan write-off, regulated lenders are prohibited from granting new credit to the borrower. The restriction period will be twice the time between the write-off approval and the full repayment of the loan.
Borrowers listed as wilful defaulters on two or more occasions within a decade will face an automatic five-year ban, or longer if the calculated period exceeds that limit.
The sanctions also apply to directors of companies found to have diverted funds, falsified accounts, or engaged in fraudulent transactions.
Restoring Credit Access
Defaulters can only regain access to credit after fully settling their debts and associated fees, and convincing lenders of their ability and willingness to repay in the future.
Stricter NPL Limits
The BoG has also directed banks to reduce their NPL ratios to a maximum of 10 per cent by the end of 2026, while microfinance institutions must maintain a 5 per cent limit. From 1 January 2027, any institution exceeding these thresholds will be barred from paying dividends, awarding bonuses, or expanding loan portfolios until compliance is restored.
The central bank says the measures are designed to strengthen credit discipline, protect financial stability, and improve lending confidence in Ghana’s banking sector.
