Government has released an amount of GHC1.5 billion to continue the bailout programme to affected investors of the failed fund management companies that had their licenses revoked in November 2019.
The total amount of GHC 1.5 billion will be released in three tranches commencing with the first tranche of GHC 700 million in August 2024, and GHC 400 million each in October 2024 and December 2024.
A statement issued by the Securities and Exchange Commission (SEC) on Wednesday, September 11, said the move 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
“As announced by the Minister of Finance in his recent monthly economic update, the Government, through the Ministry of Finance, has approved the release of an amount of GHC 1.5 billion to continue the bailout program to affected investors of the failed fund management companies that had their licenses revoked in November 2019.”
“The total amount of GHC1.5 billion will be released in three tranches commencing with the first tranche of GHS 700 million in August 2024, and GHC400 million each in October 2024 and December 2024,” the SEC statement said.
“This GHC 1.5 billion is in addition to the GHC 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,” it added.
Humanitarian consideration
“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. This bailout covers investors with examined claims who have accepted the Government’s bailout package.”
Under this current release, investors will receive the higher of GHC 50,000 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. 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.