Banking Clean-Up: GH¢700 million bailout funds ready for disbursement by end of the month - Report

Investors affected by failed fund management companies that had their licenses revoked in November 2019 are set to have their accounts credited by the end of this month.

This comes after the government, through the Securities and Exchange Commission (SEC), recently approved the release of a GH¢1.5 billion bailout package.

The funds, which will be released in tranches, are made up of GH¢700 million in August 2024, and GH¢400 million each in October 2024 and December 2024.

According to a Citi Business News report, the latest development follows the conclusion of engagements between the lead fund manager, GCB Capital, and investors over the roadmap for the first tranche of GH¢700 million.

Additionally, the final terms of the agreement contained in the roadmap are expected to be received by the end of September.

During the engagement between the lead fund manager and investors, emphasis was placed on how affected customers of failed fund management firms can smoothly access the funds.

Subsequently, all investors with outstanding balances are expected to be paid on a pro-rata basis as part of efforts to bring them financial relief after investments were locked due to the cleanup exercise in November 2019.

The Securities and Exchange Commission of Ghana earlier announced that investors will receive a higher value of GH¢50,000 or 15% of their outstanding value in this phase. This means that all investors with outstanding balances of GH¢20,000 and below will receive all their funds by the end of this month (September 2024).

Customers with outstanding balances of GH¢100,000 will receive GH¢50,000, while investors with the remaining balance of GH¢500,000 will receive GH¢75,000 as part of the bailout package.

However, customers with GH¢1 million and GH¢5 million will receive GH¢150,000 and GH¢750,000, respectively.

MA

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