Business insolvency practitioners in Ghana are calling on the Bank of Ghana to adopt measures that would allow distressed but viable companies undergoing restructuring to obtain new working capital.
The initiative is led by the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP), which says the lack of post‑commencement financing remains one of the biggest hurdles to rescuing businesses in the country.
While Ghana’s business rescue framework offers a pathway for companies to restructure and avoid liquidation, many firms that enter administration struggle to secure the funding required to keep operating and reverse their fortunes.
“Only about five companies have gone through administration since the law was introduced, and access to fresh financing is a major challenge,” CIRIP President Felix Addo told Citi Business News. “We are engaging the Bank of Ghana to explore how existing prudential rules can be structured to allow distressed companies, particularly those whose existing loans have been classified as non‑performing, to access new working capital under controlled conditions.”
Addo explained that denying liquidity to viable companies simply because they are experiencing financial distress can be detrimental, especially when owners cannot or will not inject additional equity. Without fresh capital, businesses in restructuring may have limited options to maintain operations, preserve jobs and ultimately recover.
The Institute believes a well‑structured post‑commencement financing regime could strengthen Ghana’s business rescue framework by giving distressed but viable companies a realistic chance to restructure and return to financial health.
In addition to engaging the central bank, CIRIP is urging businesses to strengthen financial management and planning to reduce the risk of distress. Early identification of financial problems and stronger corporate controls can improve the chances of successful restructuring before challenges become more difficult to resolve.
Marking its 20th anniversary under the theme “Rescue! Reform! Renewal! Leading Business Restructuring and Future Economic Growth in Ghana,” CIRIP plans a series of activities focused on bolstering the country’s restructuring and insolvency framework.
What follows is a collaborative effort between the insolvency profession and the Bank of Ghana to create a more resilient business environment in Ghana.
