The Gabonese government has just withdrawn the approval of two financial institutions namely. These institutions were closed following numerous difficulties noted by the country’s financial authorities in the operation of decentralized financial services (DFS).
According to the Ministry of Economy, which gives the information, the two institutions are hit hard by the economic crisis that is shaking the country and could not withstand the effects of adverse economic conditions.
A situation characterized by a decline in the results of the sector, during the first nine months of the 2017 exercise, with a stock of deposits that amounts to 34,6 billion Fcfa against 35,6 billion Fcfa, a year earlier, a drop of 2,8%, despite the growth observed in the number of establishments created during the same period.
The cleansing of the sector has, however, allowed microfinance institutions to see their own capital strengthened. They amounted to 4,2 billion Fcfa 30 September 2017, 3,55 XCF against 2016, an increase of 18,3%.
Among the difficulties encountered by these two structures, which now reduce to 14 the number of decentralized financial services operating in Gabon, there is the accumulation of wage arrears to employees.
