Isaac and Bless Boahen saved for months to fund her economics doctorate, but when the time came to cash in the investment, they were left empty handed.
The couple are among at least 70,000 investors who have become collateral damage from a cleanup of Ghana’s banking industry. The crackdown, which reduced the number of lenders by a third and saw the closure of 23 savings and loans companies, also triggered a run on fund managers, who couldn’t sell their holdings fast enough to meet demand.
That’s tying up as much as 9 billion cedis ($1.6 billion) of investments, more than a third of the 25 billion cedis in assets that private fund managers oversee for retail and institutional investors.
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Update: "Horror" In Ghana As A Third Of Banks Shutter, Sparking Unprecedented Bank Run (Zero Hedge)
WNU Editor: A bank run is a sight that you do not want to see. I saw it happen in Moscow in 1992, and the look on people's faces when they realized that they have lost their life savings is a sight that you will never forget.
