The government of Ghana is asking Parliament to approve GHS5.5 billion for use in paying the remaining customers whose funds were locked up with various financial institutions as a result of the financial sector clean-up exercise.
Caretaker Finance Minister made the appeal when he presented the 2021 budget and economic statement to Parliament on Friday, 12 March 2021.
“Mr Speaker, the resolution of the banking industry has been completed while that of the 17 asset management companies (AMC) is ongoing.
“Out of an estimated amount of GHS8.5 billion, this august House approved an amount of GHS3.1 billion in July 2020 to settle investors of 30 failed AMCs.
“While the Securities and Exchange Commission (SEC) waits to obtain liquidation orders for the remaining 17 AMCs, it worked with the Ministry of Finance to provide a partial bailout of GHS50,000 each, paid to over 90,000 investors”, the Majority Leader said.
“Mr Speaker, for the Securities and Exchange Commission to fully settle investors of the remaining 17 AMCs, an amount of GHS5.5 billion (1.3% of GDP) is estimated to achieve that.
“For that reason, we have come to this august house once again to seek your approval to raise an amount of GHS5.5 billion in 2021 to complete the asset management industry bailout”, he said.
Source: ClassFMonline.com