The banking industry in Ghana has initiated formal discussions with the Ministry of Foreign Affairs to address the growing challenge of loan defaults by medical professionals who have relocated abroad. This move aims to ensure that doctors who secure personal loans from local banks before migrating continue to fulfil their repayment obligations after leaving the country.
President of the Ghana Association of Banks, John Awuah, explained that the Association is collaborating with the Ministry to establish diplomatic channels for communication with Ghana’s embassies and consulates abroad. The goal, he said, is to trace and engage loan defaulters who are currently working overseas. “There are processes we are going through with the Ministry of Foreign Affairs to contact the diplomatic corps since you don’t just wake up and write to them,” Mr. Awuah stated.
He confirmed that a formal letter has already been lodged at the Ministry to begin this engagement, describing it as a reactive yet necessary mechanism to recover funds owed to local banks. According to him, the issue has become increasingly concerning within the banking sector, as many medical professionals are taking advantage of the system.
The trend involves doctors applying for personal loans—often between GH¢120,000 and GH¢150,000—under the guise of general financial needs. Using their bank statements as proof of credibility, they secure these loans, obtain travel visas, and subsequently relocate to countries such as the United Kingdom, the United States, and Canada, without making any effort to repay the loans. “They have bank accounts. They use their bank statements. They have personal loans. The bank will not ask you what exactly you are going to buy since it is a personal loan,” he explained.
Mr Awuah expressed deep concern over the moral implications of this practice, noting that medical professionals are among the most respected members of society and should be expected to uphold high ethical standards. He disclosed that about 70 percent of these doctors who relocate fail to service their loans once they leave Ghana. “These are medical doctors, people we hold in high esteem, and about 70% of them are not paying,” he lamented.
The situation, he warned, has led to an increase in non-performing loans (NPLs) within the banking industry. This not only undermines public confidence in the sector but also puts financial pressure on banks that rely on timely loan repayments to sustain liquidity and profitability. “Wherever they are going, they are working and earning. One would expect that as professionals, they would take responsibility for their financial commitments in Ghana,” he added.
Mr Awuah further revealed that banks had previously considered engaging foreign embassies directly to ensure that visa applicants provide loan clearance certificates before being granted travel permits. However, this initiative required formal diplomatic authorization, which can only be facilitated through the Ministry of Foreign Affairs.
“At some point, we were even attempting to write to the embassies to seek clearance from banks before they would allow visa processes to go through,” he said. “But that has to go through the proper channels, and that’s why we are working with the Ministry.”
He emphasized that the Ministry of Foreign Affairs is well positioned to play a key role in resolving this issue through collaboration with Ghana’s diplomatic missions abroad. Such cooperation could allow banks to track borrowers, initiate repayment arrangements, or even enforce financial accountability through international mechanisms.
The banking industry is hopeful that, with the Ministry’s support, a sustainable system will be established to prevent future occurrences and recover outstanding debts from existing defaulters. Mr Awuah added that discussions are ongoing to explore policy options that would allow banks to verify visa applicants’ financial commitments before approving loans or facilitating travel-related transactions.
The move underscores a broader effort to promote financial responsibility among professionals and protect the banking sector from rising bad loans. It also highlights the need for stronger institutional coordination between financial institutions and government agencies, particularly the Ministry of Foreign Affairs, in addressing cross-border financial obligations.
As banks continue to face challenges from loan defaulters who migrate abroad, this initiative represents a strategic step toward accountability and financial discipline. The collaboration with the Ministry of Foreign Affairs is expected to serve as a model for similar efforts across other professional sectors in the future.
