Full Bailout Scheme
The Full Bailout scheme is the mainstream bailout programme. Payments under this scheme commenced in October 2020. To date, 7,470 persons have been paid under this scheme, with a total value of GHS861.15 million. The mainstream AM Fund has two components: Tier 1 allows for immediate cash withdrawals if desired; and Tier 2 is the long-term component with withdrawal restrictions over a defined period.
Individual investors aged 60 years and above, as well as hospitals, schools and faith-based organisations are permitted to cash out all their validated claim amounts through Tier 1 of the Fund. Financial institutions, associations, welfare funds, etc. are entitled to 50% of their validated claims in cash (Tier 1) with the remainder in Tier 2. Individuals below age 60 can access up to a maximum of either GHS70,000 or 20% of their validated claims, whichever is higher, in Tier 1, and the balance, if any, in Tier 2 of the Fund. All other claimants not categorized above receive 20% of their validated claims in Tier 1 and the balance in Tier 2. For all categories,redemptions from Tier 2 are scheduled to commence in October 2021
Partial Bailout Scheme
Per the original bailout programme, no payments could be made to investors with the FMCs who were still in court, including clients of Blackshield Fund Management (formerly Gold Coast Fund Management), the largest of the collapsed firms. Fortunately, Government decided to intervene again with a special arrangement to mitigate the peculiar difficulties faced by investors in this category, as there appeared to be no immediate end in sight for the court processes. This special intervention is the Partial Bailout scheme and involves the payment of up to GHS 50,000 per investor, pending the granting of liquidation orders by the court.
Validated claims above this capped amount, if any, would be paid under the Full Bailout scheme, when the courts eventually grant liquidation orders for the FMCs in scope. The Partial Bailout scheme commenced in December 2020, and to date 58,197 persons have been paid with a total sum of GHS 1.10 billion. This includes 47,909 persons (mainly former clients of Blackshield Fund Management) whose validated claims were GHS50,000 or less and have therefore been fully
paid in cash.