BoG

Credit Risk Remains Elevated, Slows Down New Lending By Banks – BoG
21 Dec

Credit Risk Remains Elevated, Slows Down New Lending By Banks – BoG

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Credit risk remained elevated during the third quarter of 2023, reflecting the sharp increase in the stock of non-performing loans in the banking industry, which translated into a higher NPL ratio. According to the Bank of Ghana’s November 2023 Monetary Policy Report, the stock of gross loans and advances (domestic and foreign) contracted between October 2022 and October 2023, reflecting a slowdown in new lending by banks and the effect of the appreciation of the Ghana cedi on the outstanding loan balance during the review period. Therefore, gross loans declined by 9.5% to ¢73.5 billion at end-October 2023, compared to…
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President Lauds BoG For Restoring Macroeconomic Stability
20 Dec

President Lauds BoG For Restoring Macroeconomic Stability

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The President, Nana Addo Dank­wa Akufo-Addo, has commend­ed the Bank of Ghana (BoG) for the role it has played in the last seven years to maintain economic stability and development of the country. “In the last seven years, the BoG has distinguished itself in discharging its duties to the admiration of all well-meaning Ghanaians. It has been a sound banker to the government and a safe custodian of the country’s money,” the President stated this during the 2023 end of year cock­tail of the BoG. According to President Akufo-Addo, BoG had also been an efficient currency manager, a reliable source…
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BoG Cautions Public Against Schemes That Advertise Sophisticated Products
14 Dec

BoG Cautions Public Against Schemes That Advertise Sophisticated Products

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The Bank of Ghana has cautioned consumers against schemes that advertise sophisticated products to the general public that are not easily understood. According to the Central Bank, the scheme may be a Ponzi only meant to lure unsuspecting individuals to invest in these fraudulent products. In a circular to the public, it said “beware of institutions whose operations overly revolve around one person, such as the Chief Executive Officer”. “For example, it should be a source of concern if payment of matured investments cannot be made to customers because the Manager has travelled”, it explained. “Is the interest rate offered to…
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Government To Borrow ¢94.4Bn Via T-Bills In 2024
11 Dec

Government To Borrow ¢94.4Bn Via T-Bills In 2024

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Government will borrow ¢94.4 billion via treasury bills in 2024 to finance its expenditure. This includes ¢31.8 billion buffer for auction shortfalls. Analysts believe the government will continue the excess uptakes to build the target buffer. Given the lower inflation and interest rates outlook, the locking-in of the 364-day yield offers a better inflation-adjusted return over the holding period. In November 2023, the government accepted ¢15.3 billion, surpassing the rollover obligation by 45.4% and the offer target by 26.5%. However, investors submitted total bids worth ¢15.6 billion (+14.9% month-on-month), exceeding the T-bill offer target by 29.0%. Importantly, money market liquidity…
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We’ve Prudently Managed BoG; Ghanaians Must Rather Applaud Us – Addison
05 Dec

We’ve Prudently Managed BoG; Ghanaians Must Rather Applaud Us – Addison

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The Governor of the Bank of Ghana, Dr Ernest Addison has highlighted the central bank’s resilience in supporting the economy during the 2022 crisis, stating that the BoG deserves “applause” from Ghanaians and not unwarranted attacks. Speaking at the Governor’s Day organized by the Chartered Institute of Bankers, Dr Addison commended the central bank’s role in preventing the economy from succumbing to the pressures of the crisis. “It is important to remind ourselves, as players in the global economy, that the crisis that hit the Ghanaian economy in 2022 was like what pertained in many other frontier and emerging market…
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Ghana Financial Stability Fund Takes Off – Governor
04 Dec

Ghana Financial Stability Fund Takes Off – Governor

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The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has disclosed that the Ghana Financial Stability Fund has taken off. He made the announcement at a press briefing after the Monetary Policy Committee meeting. “What maybe left now is the official launch by the Finance Ministry”, he said. Dr. Addison was optimistic the fund will help the country’s economic recovery drive. What is the Ghana Stabilization Fund? The Fund seeks to mitigate the potential impact of the Domestic Debt Exchange Programme on the financial institutions. Parallel to this strategy is the development of the Insurance Sector Strengthening Strategy…
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T-bills Auction: Interest Rates Return To Upward Trajectory; Government Misses Target By 30%
04 Dec

T-bills Auction: Interest Rates Return To Upward Trajectory; Government Misses Target By 30%

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Interest rates returned to upward trajectory for the first time in a month, as the government continued to borrow heavily on the money market to finance its expenditure. According to auction results by the Bank of Ghana, the rate on the 91-day T-bill went up marginally to 29.56% from the previous week’s 29.49%. That of the 182-day bill also surged to 31.76% from the preceding week’s 31.75%. The one-year bill also increased by 21 basis points to 33.44%. Meanwhile, the government accepted all the bids for the treasury bills tendered to the tune of ¢3.917 billion. Its ambitious target of…
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We Have Enough Reserve Buffers To Support The Economy – BoG Governor
29 Nov

We Have Enough Reserve Buffers To Support The Economy – BoG Governor

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The Bank of Ghana (BoG) has enough reserve buffers to support the economy until the second tranche of $600 million balance of payment support from the Interna­tional Monetary Fund (IMF) is released to the country, the Governor, Dr Ernest Addison, has stated. He explained that he was hopeful the government would complete negotiations with bilateral and commercial credi­tors before the end of the year to enable the IMF release the second tranche of the balance of payment support under the Ghana’s three-year Extended Credit Facility with the Fund. Dr Addison disclosed this yesterday in response to a ques­tion on thepossible…
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IMF Cash, Cocoa Loan To Arrive Before End Of 2023 – BoG Governor Assures
28 Nov

IMF Cash, Cocoa Loan To Arrive Before End Of 2023 – BoG Governor Assures

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The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has assured that Ghana will secure the second tranche of the International Monetary Fund (IMF) bailout package and the cocoa syndication loan before the end of 2023. “I can tell you from the last briefing that we had; things are moving relatively well when it comes to Ghana securing the second tranche of the IMF cash”, he emphasised. Dr.  Addison is however worried about developments around the restructuring of Zambia’s bonds and how it could impact on Ghana’s discussion with the Official Creditor Committee. “On the Zambia situation, creditors…
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T-bills: Interest Rates Fall For 3rd Week Running; Government Gets ¢5.008Bn
27 Nov

T-bills: Interest Rates Fall For 3rd Week Running; Government Gets ¢5.008Bn

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Interest rates fell for the third week running as demand for Treasury bills surged on the money market. According to auction results by the Bank of Ghana, the government secured nearly 40% oversubscription of the T-bills sale. The interest rate on the 91-day T-bill dropped marginally to 29.49% from 29.74% the previous week. The same could also be said about the 182-day bill as the rate went down to 31.75% from the preceding week’s 31.87%. That of the 364-day bill also declined to 33.23% from 33.46% previously. Meanwhile, the government received ¢5.008 billion from the sale of the T-bills, ¢1.42…
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