Document Type

Case Study

Case Series

Broad-Based Asset Management Programs

JEL Codes

G01, G28


The Ghanaian financial sector was in severe distress in 1985 after a decade of high and variable rates of inflation, low economic growth, and financial policies ill-suited to the country’s goals. Ghana, with World Bank support, implemented a Financial Sector Adjustment Program (FINSAP) between 1988-1997. To comply with the FINSAP, the Government established the Non-Performing Assets Recovery Trust (NPART) as a temporary public asset management company under Provisional National Defence Council Law 242 on February 28, 1990, with an initial 6-year statutory life, for the purpose of: 1) facilitating the restructuring and recapitalization of major state-owned banks; 2) expediting the restructuring of public- and private-enterprises; and 3) maximizing recovery value of non-performing assets (NPAs) to reduce the Government’s fiscal burden. NPART was given a Cedi 18 billion ($500 million) Aggregate Recovery Target out of a total of Cedi 50 billion in acquired NPAs. By NPART’s cessation on June 30, 1997, recovery was approximately Cedi 19.6 billion, or about 10% above the target. Evaluations indicated that the aggregate condition of restructured state-owned banks had improved, representing a satisfactory performance overall. However, NPART was also criticized for lacking institutional independence, transparency, and an overall legal framework. Moreover, the use of NPART to facilitate corporate restructuring became politically difficult and most of the assets were ultimately liquidated.

Date Revised