Due to escalating harassment and assaults, investment business Databank has stated that its offices would be closed on Thursday, December 22nd, with workers authorized to work remotely.
In a statement, the business stated that the present macroeconomic issues, as well as the newly announced debt exchange program, have made it impossible for the company to secure capital to satisfy consumer needs.
"We are hoping that once the Debt Exchange Programme has been finished (estimated settlement date: January 5, 2023), we will be able to acquire the required money to once again pay withdrawal requests. "We are completely dependant on the Government of Ghana to pay us so that we can pay our clients," portions of the message stated.
Due to Databank's failure to satisfy withdrawal requests, some clients have resorted to verbal abuse, threats, and physical attacks on its employees, necessitating the necessity for employees to begin working remotely.
"Many of our clients have attempted to be patient with us as we wait for the government to restore liquidity. We are incredibly appreciative for this. However, numerous consumers have felt the need to physically and verbally harass our workers, as well as threaten their lives and the lives of their families. As a result, we have no choice but to transition to a work-from-home alternative.
"While our offices will be physically closed, we will continue to serve you and execute transactions remotely, and all of our digital channels will remain available, just as they did during Covid. We cannot, however, imperil the lives of our employees by opening the office without any accessible money."
Read the entire message below.
Dear Sir/Madame,
Please be aware that beginning tomorrow, December 22, all Databank employees will work from home until January 10, 2023.
Why was this choice made?
We are in the midst of a macroeconomic crisis, which is having a negative impact on our business, and hence Databank. Many fund managers had trouble selling Government of Ghana shares due to the crisis. Due to the inability to sell, fund managers were unable to meet withdrawal requests. Bonds were frequently offered at a discount since the market value of the bonds had declined dramatically. This situation exacerbated after the Debt Exchange Program was launched on December 5, 2022. Following the introduction, secondary market activity has nearly ceased, making it hard for us to acquire liquidity.
This is due to the expectation that fund managers will exchange all of their current bonds for the new ones issued by the government. However, if we are unable to exchange the bonds we hold, we will be unable to pay withdrawal requests. As a result, our planned two-week timeline for withdrawal requests has been altered.
Consultations with the Regulator
We are now discussing the implications of the debt exchange on Databank's mutual funds and other Collective Investment Schemes with the Ministry of Finance, our regulator (The Securities and Exchange Commission (SEC)), and the Ghana Securities Industry Association. As part of these conversations, on December 9, 2022, the SEC issued a notice to Market Operators (SEC/CIR/005/12/22) expressing its plan to provide much-needed liquidity assistance to the market, including access to the Financial Stability Fund as a last option. As a result, we are hoping that once the Debt Exchange Program is completed (estimated settlement date: January 5, 2023), we will be able to acquire the required money to pay withdrawal requests once more.
We are completely dependant on the Ghanaian government to pay us so that we may pay our clients.
Why are we working from home?
Many of our clients have attempted to be patient with us as we await liquidity from the government. We are incredibly appreciative for this. However, numerous consumers have felt the need to physically and verbally harass our workers, as well as threaten their lives and the lives of their families. As a result, we have no choice but to transition to a work-from-home alternative.
While our physical offices will be closed, we will continue to service you and execute transactions remotely, and all of our digital channels will remain available as they were throughout Covid. We cannot, however, imperil the lives of our employees by opening the office without any accessible cash.
We are completely aware of the present crisis in our business, and we continue to appeal for your patience during these trying times. We are optimistic that the Financial Stability Fund, or any other fund established by the government in the meantime, would give much-needed assistance to you and other investors.
We will issue another update once we have a better understanding of the situation.
Thank you very much.