By Jibril Abdul Mumuni
Accra, Oct. 6, GNA – Mr Elliot Amoako, Head of the Resolution and Restructuring Unit of the Bank of Ghana (BoG), has urged greater use of restructuring to revive viable distressed businesses.
He said some businesses faced temporary liquidity constraints and could regain financial stability through effective restructuring rather than immediate liquidation.
Mr Amoako made the call on Tuesday at a masterclass organised by the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) as part of its 20th anniversary celebrations.
He said restructuring could involve debt renegotiation, new financing and changes to management or business operations.
Under Ghana’s Corporate Insolvency and Restructuring Act, 2020 (Act 1015), insolvency occurs when a business faces financial distress requiring legal intervention, while restructuring involves reorganising a distressed but viable business to restore its financial health and operations.
Mr Amoako said effective restructuring could preserve jobs, protect creditors and safeguard productive assets and commercial relationships.
”For a viable business, restructuring can preserve productive assets, jobs, commercial relationships and creditor value,” he said.
Mr Amoako stressed the need for credible viability assessments based on sound financial analysis and realistic recovery prospects.
He also underscored the importance of post-commencement financing, cautioning that it should not be used to conceal losses or weaken credit discipline.
Mr Felix Addo, President of CIRIP, said only licensed professionals were authorised under Ghanaian law to undertake restructurings, liquidations, receiverships and the management of distressed assets.
He said unlicensed practitioners could, upon summary conviction, face two to five years’ imprisonment and financial penalties.
”The privileges that come with a licence also carry significant responsibilities, and insolvency practice is a profession that must be valued and treated with the utmost seriousness,” he said.
Parliament enacted the Chartered Institute of Restructuring and Insolvency Practitioners, Ghana Act, 2024 (Act 1117), in July 2024, transforming the Ghana Association of Restructuring and Insolvency Advisors (GARIA) into CIRIP Ghana.
The Act came into force on July 26, 2024, dissolving GARIA and transferring its assets, liabilities, members and responsibilities to CIRIP Ghana.
GNA
Edited by Kenneth Sackey
6 Oct. 2026
Photos attached
Reporter: Jibril Abdul Mumuni
Email: [email protected]