At least GH¢5.5 billion (1.3% of GDP) is required by government to fully settle investors of the remaining 17 asset management companies (AMCs) as part of the industry bailout.

The AMC’s include Gold Coast Fund Management Ltd (now Blackshield Capital Management), First Banc Financial Services Limited, Liberty Asset Management, Beige Capital Asset Management Ltd, Ideal Capital Partners Ltd, and Frontline Capital Advisors Ltd among others.

Minister for Parliamentary Affairs, Osei Kyei Mensah Bonsu told parliament government has been working to complete the bailout of the asset management industry through the provision of a bailout package for investors of the failed asset management companies (AMCs).

“…Out of an estimated amount of GH¢8.5 billion to help pay investors of the failed AMCs, this august House approved an amount of GH¢3.1 billion in the 2020 Mid-Year Budget. At the end of December 2020, Government had provided an amount of GH¢3.4 billion for the payment of validated claims to investors of 30 AMCs for which liquidation orders were obtained. This amount was in a combination of a 3-year marketable bond of GH¢2.5 billion and a 5-year zero coupon bond of GH¢915 million.

He gave the statistics when he presented the 2021 Budget statement read in Parliament on Friday 12th March 2021.

Source: Ghana/ Fm