Ghana’s new state-owned bank has some tricky terms for investors
Consolidated Bank Ghana picked up the pieces when five banks failed — but now it needs some favours in return
Ghana’s new state-owned lender is asking the holders of more than 1.1-billion cedis ($230m) in investments to accept lower rates and wait five years before accessing their cash, according to an industry body for fund managers and brokers. Consolidated Bank Ghana, which was formed in August through a merger of five failed lenders, will issue institutional investors five-year bonds yielding 7.5% for fixed-term savings that were held with the liquidated companies, Emmanuel Asiedu, president of the Ghana Securities Industry Association and managing director of the local unit of Stanlib Asset Management, said in an interview. The same investors previously earned annualised rates of as much as 19% on savings with terms of three months to two years, said Asiedu. Inherited debt “I don’t expect fund mangers who were yielding over 15% to be happy,” he said. Felix Dontoh, a CBG spokesperson, said the lender’s management was not readily available to respond to questions sent via text message. C...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.