Loan disbursement delay due to Teachers’ Fund liquidity issues

The Teachers’ Fund was formed by a Trust Deed in May 1998 as a retirement supplement and Solidarity fund for the Ghana National Association of Teachers (GNAT). The Fund began with a check-off system that deducted GH₵0.10 (about ₵1.00) per month as basic payments from the salaries of GNAT members.

It also gives loans to its members, but currently, the Fund is facing challenges with loan disbursement after members apply for a loan and all members/teachers and other concerned parties have received a full explanation of the reasons for the delay in the delivery of the Teachers Fund (TF) loan.

Reasons For Teachers’ Fund Loan Disbursement Breakdown

The Teachers Fund’s budgetary allotment for loans for 2023 has been surpassed by GH101.64 million.

The surge in demand for loans caused by increased affordability brought on by the projected 30% pay increase for 2023 is the second cause of the delay.

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Additionally, there are approved checks totaling GH190.01 million that have not yet been sent to the various GNAT district offices.

Once more, there are loans totaling GH7.92 that have not yet been approved or paid out.

The appraisal and approval of the 852 new loans are still pending.

Reasons for Teachers Fund Liquidity Problems

There are currently some liquidity difficulties with Teachers Fund (TF). The following is a list of the liquidity problems that Teachers’ Fund is experiencing:

  • The demand for loans from the Teachers’ Fund has skyrocketed.
  • There are delays in releasing funds deducted by controller on behalf of the Fund (3 months worth of deductions are in arrears).
  • Government is not able to pay for matured government bonds and treasure bills that the Fund has subscribed.

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