Bad debt

11 Mar

Banks Wrote-Off GH¢4.33Bn As Bad Debt In 2023

wontumionlineBusinessBad debt, Banks

Banks in Ghana wrote off GH¢4.33 billion as bad debt in 2023, a 79.2% reduction over that of 2022. The bad debt was classified as loan losses, depreciation & others. In 2023, the total bad debt was estimated at GH¢20.8 billion. According to the Bank of Ghana, banks reported lower impairments on financial assets in 2023. Total provisions and impairments contracted by 79.2% in December 2023, after increasing sharply in December 2022 on account of the huge impairments on restructured bonds. Meanwhile, asset quality risks were elevated in December 2023, reflecting the lingering impact of the 2022 macroeconomic challenges on…

21 Feb

Banks Wrote-Off ¢5.9Bn As Bad Debt In 2022

wontumionlineBusinessBad debt, Banks, BoG, NPLs

Banks operating in Ghana wrote-off about ¢5.9 billion as bad debt in December 2022. According to the Domestic Money Banks Income Statement, this is about 184.2% increase over the previous year. The total provision made were classified as loan losses, depreciation, and others. Though the Bank of Ghana did not give reasons behind this bad debt, it is believed that a difficult economic environment that triggered a high cost of borrowing may be the main reason. According to the Bank of Ghana, the industry’s Non-Performing Loan stock increased from ¢8.2 billion in December 2021 to ¢10.4 billion in December 2022.…