DDEP Archives - Page 2 of 4

31 Aug

Bank Of Ghana’s Vital Task Of Guiding Inflation Back To 8% Target Is Not Hindered – IMF Resident Rep.

wontumionlineBusinessbank of ghana, DDEP, imf

The International Monetary Fund (IMF) Resident Representative in Ghana, Dr. Leandro Medina, has said that the Bank of Ghana’s task of guiding inflation back to its 8 percent target in a gradual manner is not hindered by its participation in the Domestic Debt Exchange Programme (DDEP). He said the BoG’s participation in the DDEP formed part of efforts to burden-share the load placed on government and banks. Speaking in an interview with the B&FT newspaper, Dr Medina noted that an IMF analysis showed that “this situation does not hinder the BoG from effectively executing its policy mandates, including the vital…

25 Aug

Government Considers Re-opening DDEP For Persons Who Didn’t Sign Up – Dr. Amin Adam

wontumionlineBusinessDDEP, Dr. Mohammed Amin Adam, Finance Ministry

Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam has disclosed that government is looking at reopening the Domestic Debt Exchange Programme for persons who did not sign up to reconsider their decisions. According to him, the move has been influenced by concerns of tradability by some investors who still want to hold on to the old bonds and government papers. Dr. Adam added that the proposal could be considered soon with some measures taken to deal with the concerns of all investors. Appealing to bondholders who did not sign up the first time, he urged such investors…

24 Aug

DDEP: Govt Reiterates Its Commitment To Honour All Future Payment Obligations

wontumionlineBusinessDDEP

The Government of Ghana has expressed its profound appreciation to all stakeholders, especially bondholders who voluntarily responded to the national call and participated in the Domestic Debt Exchange Programme (DDEP). The Finance Ministry said in a statement that under the terms and conditions of the DDEP, which was launched on 5th December, 2022, to complement Government’s fiscal programme, the first coupons of the tendered bonds were due on 22nd August, 2023. Accordingly, on Tuesday, 22nd August, 2023, Government honoured its commitment and fully settled the first coupon due from the DDEP, in the amount of GH¢ 2,369,667,190.18, approximately 2.4 billion Ghana Cedis. “The…

21 Aug

Impact Of DDEP Impairment Losses On Banking Sector And Role Of Ghana Financial Stability Fund – The Case Of Local Banks

wontumionlineBusinessBoG, DDEP, Ghana Financial Stability Fund, imf, local banks, ministry of finance, world bank

The Ghanaian financial sector has been in severe distress, characterised by an insolvent banking system as result of the domestic debt exchange in 2022. Using the 16% discount rate for the Net Present Value calculation for government bonds, the Domestic Debt Exchange Programme losses of 22 banks stood at ¢37.7 billion with the private domestic banks and state-owned banks accounting for losses of ¢19.9 billion, while foreign owned banks accounted for ¢17.8 billion. The DDEP impairment losses have technically rendered some of Ghanaian local owned banks insolvent that would require additional capital support from shareholders or participate fully in the…

09 Aug

8 Banks Accounted For 67% Of Banking Industry Exposure To DDEP – 2023 Ghana Banking Survey

wontumionlineBusiness2023 Ghana Banking Survey, Banks, DDEP

Eight banks accounted for 67% of the banking industry exposure to the Domestic Debt Exchange Programme. This confirmed Joy Business story in November 2023 that eight banks were highly exposed to the Government of Ghana bonds. According to the 2023 Ghana Banking Survey by accounting professional, PwC, 72% of the impairment charge in 2022 were attributed to these banks. GCB, Consolidated Bank Ghana, Ecobank Bank Ghana and Absa Bank Ghana recorded the highest impairment charges of ¢1.81 billion, ¢1.77 billion, ¢1.62 billion and ¢1.61 billion respectively. However, the banks most impacted by impairment charge as a proportion of their investment…

13 Jul

Some Financial Sector Stakeholders Commend Ofori-Atta For Fulfilling His Promise To Domestic Bondholders

wontumionlineBusinessDDEP, Extractive Governance Reporting Centre, Ken Ofori Atta, ministry of finance

Some stakeholders in Ghana’s economic and financial sector have commended the Minister of Finance, Ken Ofori-Atta, for fulfilling his promise to the domestic bondholders, a move that has finally ended the agitations and complaints that surrounded the government’s Domestic Debt Exchange Programme. The Extractive Governance Reporting Centre (EGRC) in a statement acknowledged the sincerity of the finance minister and officials of the Ministry of Finance in their dealings with the domestic and individual bondholders. “We are happy that the concerns of the individual bondholders have been addressed. Let’s all support the Finance Minister, Ken Ofori-Atta and the government to address…

06 Jul

Société Générale Ghana Records GHS 109M Profit In 2022 Despite DDEP Impact

wontumionlineBusinessDDEP, Societe General

Société Générale Ghana Plc recorded a GHS 109 million profit after tax for the year 2022 as compared to the GHS 184 million cedis recorded in 2021. This represents a decrease in the profit margin of the bank. This comes on the back of the implementation of the Domestic Debt Exchange Programme (DDEP) by government which led to a general decline in the profitability of the banking sector in Ghana. Speaking at the Facts behind the Figures series organized by the Ghana Stock Exchange in Accra, the Managing Director of Société Générale Bank Plc, Hakim Ouzzani highlighted the overall performance…

05 Jul

IMF Conditionalities Not Preventing Energy Sector Leakages – ACEP

wontumionlineBusinessDDEP, Energy Sector Leakages, imf

The Africa Centre for Energy Policy (ACEP) has disclosed that the conditionalities of the International Monetary Fund are not helping curb the revenue leakages in the country’s energy sector. In a report dubbed, ‘Protecting Ghana’s Economic Sustainability in the Face of Power Sector Risks,’ the energy think tank said the already implemented conditionalities are not reflected in the revenue mobilisation efforcitibts of the country. The report said though electricity tariffs have been increased by 100 percent in the last ten months, there is still a liquidity challenge confronting the sector. “The IMF conditionalities are already being operationalised, primarily based on…

04 Jul

DDEP: Rural Banks Investors Unhappy With BoG Directive To Halt Dividend Payment

wontumionlineBusinessAssociation of Rural Banks, BoG, Comfort Owusu, DDEP

Some shareholders of Rural Banks in the country have expressed dissatisfaction at a directive from the Bank of Ghana (BoG) to halt payment of dividends. The Bank of Ghana gave the directive as part of measures to reduce the impact of the COVID-19 pandemic, the current economic challenges, and the impact of the Domestic Debt Exchange Programme (DDEP) on the financial sector. The move is also aimed at building the capital adequacy ratio of banks and specialised-deposit taking institutions. Reacting to the issue in an interview with Joy Business, the Executive Director of the Association of Rural Banks, Comfort Owusu…

30 Jun

GCB Bank Posts Strong Performance In 2022 Despite DDEP, Poised For Growth In 2023

wontumionlineBusinessDDEP, GCB Bank

GCB Bank PLC (GCB) has announced its full-year (FY) 2022 financial results highlighting the Bank’s strong performance despite the impact of the Domestic Debt Exchange Programme (DDEP). Total Operating Revenue grew by 24 percent to GHS 3.0 billion. This was underpinned by broad based growth across all the key revenue lines. Net interest income was up 11 percent, fees & commissions grew 7 percent. Trading Income was phenomenal with a growth of 208 percent to end at GHS 487 million. Operating cost went up 29 percent recording GHS 1.6 billion on account of inflationary and currency depreciation effects. Pre-provision profit…