BoG Archives - Page 16 of 22

18 Apr

DDEP: Banks Have Up To 2025 To Restore Minimum Paid-Up Capital; Industry Records Huge Loss In 2023

wontumionlineBusinessBanks, BoG, Capital Adequacy Raio, DDEP

Banks have a maximum of four years, ending 2025, to restore the minimum paid-up capital. This is as a result of capital shortfall arising solely from the derecognition losses. According to the Bank of Ghana, derecognition losses emanating from the Domestic Debt Exchange Programme will be spread equally over a period of four years, effective 2022, for the purposes of Capital Adequacy Ratio (CAR) computation. The International Financial Reporting Standards (IFRS) states that derecognition refers to the removal of an asset or liability (or a portion thereof) from an entity’s balance sheet. Due to the impact of the DDEP on the…

11 Apr

We Saved Economy From Collapsing – BoG

wontumionlineBusinessBoG, Dr. Philip Abradu-Otoo

The Bank of Ghana (BoG) has justified again its financing of the budget post Covid-19, saying, failure to do so will have spelt doom for the economy. Before Covid-19 struck, the Central Bank between 2015 and 2020 had a policy of zero financing of the budget. However, that changed right after Covid-19 when government was struggling to raise enough revenue. Speaking at the University of Ghana 75th Anniversary Public Lecture on “Ghana’s Economic; The need for Paradigm Shift”, Director of Research at the Bank of Ghana, Dr Philip Abradu-Otoo said the Bank of Ghana had no choice but to save…

10 Apr

Inflation To Average 16% In 2024 – Fitch Solutions

wontumionlineBusinessBoG, Fitch solutions, imf, Inflation

Inflation will average 16.0% in 2024, Fitch Solutions has projected. However, it is forecasting inflation to average 37.6% in 2023, higher than the 31.5% recorded in 2022. “As such, we believe that policymakers will remain focused on controlling price growth in the near term as they aim for a more substantial disinflation trajectory before concluding the tightening cycle” it stated in its latest assessment of Ghana. It said under an expected International Monetary Fund (IMF) programme, the Bank of Ghana will likely be encouraged to keep the policy rate elevated to “strengthen its monetary policy framework”. “We forecast inflation will…

06 Apr

Charges Not Disclosed To Borrowers In Loan Agreements Null And Void – BoG

wontumionlineBusinessBoG, Ghana, lenders

The Bank of Ghana (BoG) has announced that charges that are not disclosed to a borrower in a loan agreement should be considered null and void. Describing borrowers who may suffer such ordeal as victims, the BoG also directed commercial banks and lenders to refund such monies to the borrowers. “Borrowers shall be due a refund of all such charges paid”, the BoG stressed in a statement titled Bank of Ghana’s Responsible Borrowing Guidelines. It added that “victims” must report such acts to the regulator if the lenders fail to reverse the payments. According to the BoG, it is embarking…

27 Mar

Average Lending Rates Shoot Up Marginally To 36.64% – BoG

wontumionlineBusinessAverage lending rates, BoG, MPC

Average lending rates shot up marginally to 36.64% in February 2023, from 35.58% recorded in December 2022, data from the Bank of Ghana has revealed. This is equivalent to 3.02% interest rate on loans per month. In January 2023, the average cost of borrowing stood at 35.85%. With the Monetary Policy Committee of the Bank of Ghana expected to announce developments in the Ghanaian economy today March 27, 2023, particularly its key lending rate – Policy rate, it is expected that the policy rate will remain unchanged for the next two and half months. This will keep lending rates still…

27 Mar

Ghana’s Reserves Improve Slightly To $2.62Bn; Balance Of Payment Remains Negative

wontumionlineBusinessbalance of payment, BoG, net reserves

Ghana’s net international reserves improved slightly to $2.62 billion, about 2.8 months of import cover in February 2023, the Bank of Ghana has revealed in its March 2023 Summary of Economic and Financial Data. This is from the $2.24 billion recorded in December 2022, about 2.7 months of import cover. The country’s Balance of Payment at the end of February 2023 also stood at a deficit of $3.63 billion, approximately 5% of Gross Domestic Product. This was as a result of a significant decline in the Capital and Financial Account Balance which stood at a deficit of $2.17 billion in…

14 Mar

GSE, Bog To Establish Formalisation Committee For Foreign Exchange Market

wontumionlineBusinessBoG, GSE

A 5-member delegation, led by the Managing Director of the Ghana Stock Exchange(GSE), Ms. Abena Amoah, paid a courtesy call on Governor Ernest Addison and Management of Bank of Ghana. In her remarks, the Managing Director(MD) of the GSE, Ms. Abena Amoah expressed delight about the warm reception accorded her by the Governor and his team and congratulated the Governor for his leadership, which has positively impacted the financial sector. Ms. Amoah indicated that in equities trading, the Ghana Composite Index recorded a decrease of about 13% as at the end of last year, compared with the previous year. She…

13 Mar

T-bills Auction: Interest Rates Fall To 19%; Government Gets ¢4.20Bn

wontumionlineBusiness182-day, 364-day, 91-day, BoG, T-Bills

Interest rates remarkably fell significantly within just a week, following the government’s decision to reject bids with higher yields. According to the latest auction by the Bank of Ghana, the 91-day yield fell once again to 19.04% from 24.16% last week. From a high of 35% a week ago, interest rates on the short term securities have dipped significantly on the yield curve. Whilst the 91-day bill yield has fallen by 16%, that of the 182-day bill has plunged by about 13%, going for 22.84%. The 364-day bill has also dropped by about 9% to 26.82% on Friday March 10,…

08 Mar

T-bills Auction: Government Gets ¢6.15bn At 24% Interest

wontumionlineBusiness182-day, 364-day, 91-day, BoG, T-Bills, yield

The government beat the cost of its Treasury bills down significantly, securing ¢6.15 billion from the latest auction, about 121.6% oversubscription. It however accepted ¢4.52 billion of the bids from the investors, largely banks. According to results from the Bank of Ghana, the government reduced the pricing of the short term instruments from 35% to a yield of 24.16% for the 91-day T-bills. However, that of the 182-day and 364-day bills were sold at 26.55% and 27.54% respectively. The results further indicate that the 91-day T-bill received bids worth ¢2.73 billion. However, the government accepted ¢1.16 billion. For the 182-day…

02 Mar

Domestic Debt Exchange: BoG Reiterates Position Of Closely Monitoring Banks To Prevent Insolvency

wontumionlineBusinessBanks, BoG, Domestic Debt Exchange, Ghana Association of Restructuring and Insolvency Advisors

The Bank of Ghana (BoG) has reiterated that it is closely monitoring some developments among banks due to the Domestic Debt Exchange which is increasing liquidity pressures. This is to help reduce any pressure on their balance sheet and consequently avert the probability of insolvency. Speaking on behalf of the Governor at the Induction Ceremony of the Ghana Association of Restructuring and Insolvency Advisors, Head of Resolution Office, Elliot Amoako, said macro prudential risk assessment of the banking sector indicates an emergence of spill over from the current economic challenges on the banking industry. He, however, appealed to the insolvency…