Finance Minister revealed in the latest monthly economic briefing, that the government has sanctioned GHS1.5 billion to advance the bailout initiative for customers impacted by defunct fund management companies.
These FMCs had their licenses revoked in November 2019.
The GHS1.5 billion will be disbursed in three phases: GHS700 million in August 2024, followed by GHS400 million in October 2024, and the final GHS400 million in December 2024.
A statement from the Securities and Exchange Commission (SEC), said this GHS1.5 billion is in addition to the GHS 4.46 billion previously released to affected investors with examined claims.
“The bailout money released so far has been used to pay a total number of 84,202 investor claims of the failed fund management companies, out of which 69,445 (representing approx. 82%) investor claims have been fully settled,” SEC said.
The Commission noted: “This decision, driven by humanitarian considerations, will provide further financial relief to those impacted by the revocation, including investors of Blackshield Capital Management Limited (formerly Gold Coast Fund Management Limited) and Kron Capital Limited.”
The SEC clarified that this bailout is intended for investors with verified claims who have agreed to the government’s compensation offer.
“Under this current release, investors will receive the higher of GHS50,000 or 15% of their outstanding examined claims on the defunct firms. This top-up is estimated to result in close to 91% of affected investors being fully settled,” the statement noted.
It added: “This bailout will be rolled out through the Special Purpose Vehicle, Amalgamated Mutual Fund (AM Fund) managed by GCB Capital Ltd.”
“The managers of AM Fund will hold a meeting in the coming days to provide guidance for those who would want to access the released funds as well as the prospects for leaving the claims in the AM Fund to be managed.”