Becoming a Wilful Loan Defaulter: All That Could Go Wrong for You Under the New BoG Directive

You may not want to get on the Bank of Ghana (BoG) list as a wilful loan defaulter since the consequences, under the new directives, are dire and will follow you for years, if not even decades.

The Bank of Ghana is on the agenda to squarely address the menace of Non-Performing Loans (NPLs), which are plaguing the country’s financial sector. The high NPLs, the banks say, threaten the sector’s solvency, stability, and profitability.

Under its new Non-Performing Loan (NPL) directive, the central bank has set out strict sanctions for borrowers who deliberately dodge their repayment obligations.

The sanctions outlined go beyond just losing access to a single loan. It is a financial blacklisting that can cripple your creditworthiness across Ghana’s banking system.

Here’s what could happen if you earn the infamous tag of wilful defaulter;

Your Name Goes Public

Under the new directives, the regulator has directed regulated financial institutions (RFIs) to twice a year, June 30 and December 31, to publish names and details of wilful defaulters in at least two national newspapers and on the website of the financial institution.

This is a grand public naming and shaming.

Blacklisted Across the Banking Sector

The list of wilful defaulters will also be sent to the Bank of Ghana, the Financial Intelligence Centre, and all Credit Reference Bureaus. This means every bank and microfinance institution in Ghana will know you are untrustworthy and won’t grant you a loan.

Locked Out of New Loans for Years

Once your loan is written off, you will be banned from accessing any new loan facilities. The length of this prohibition is twice the time it takes you to settle your written-off loan.

For instance, pay back one year after the write-off, and you’ll be banned for two more years; pay back after three years, and you’ll be locked out for six.

Repeat Offenders Get It Worse

If you appear as a wilful defaulter more than once in ten years, the punishment intensifies. The defaulter will be denied access to credit for at least five years or even longer, depending on their record.

Directors and Guarantors Not Spared

The implications go beyond just individual borrowers. The net is cast wider than just the borrower. If a company is caught diverting funds, falsifying accounts, or engaging in fraud, its directors will also be labelled wilful defaulters.

Guarantors who have the means to pay but refuse to honour their obligations will also be blacklisted.

A Long Road Back to Redemption

Climbing out of the blacklist won’t be easy. To regain access to credit, you must:

Fully repay all written-off loans plus charges,
Clear your credit history of any negative reports, and
Prove to banks that you can generate a steady income and are now willing to honour your obligations.

The Bottomline

This new directive, some analysts say, is one of the strongest borrower-sanction frameworks Ghana has seen. It is designed to protect depositors’ funds, encourage responsible borrowing, and restore confidence in the financial sector.

Per this new framework, once your name is out as a wilful defaulter, you are not just cut off from loans, you are cut off from trust and exiled from the country’s financial system for years.

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