DDEP Archives - Page 3 of 4

02 May

Economic Challenges: 15 Out Of 21 Banks Recorded Losses In 2021

wontumionlineBusiness2022 Summary Financial Statements, Banks, DDEP

15 out of 21 banks that have released their 2022 Audited Financial Statement registered losses last year. This record losses is as a result of a difficult economic environment that triggered the Domestic Debt Exchange Programme or debt restructuring, impacting negatively on the operations of the financial institutions. According to their 2022 Summary Financial Statements, most of the banks’ assets were impaired due to reduced coupon rate and the extension of the maturity period from five to 15 years, among others. Consolidated Bank was the biggest casualty, recording about ¢2 billion loss in 2022. Indeed, the local banks were the…

01 May

May Day: Pensions Must Be Seen As Sacrosanct – ICU On DDEP

wontumionlineBusinessDDEP, ICU, Pensions

The Industrial and Commercial Workers’ Union (ICU) is raising concerns about the inclusion of pension funds under a new Domestic Debt Exchange Programme (DDEP). According to the ICU, the survival of workers, now and in the future, depends largely on their present incomes and future pensions. “Pensions should not be violated under any circumstance, if the recent experience regarding the investment of pensioners in this country is anything to go by”, it said in a statement. On this score, the ICU said, achieving a living wage for the workers of Ghana and, by extension, protecting incomes and pensions, must be…

28 Apr

DDEP: Banks Had To Take Some Very Difficult Decisions – Awuah

wontumionlineBusinessDDEP, John Awuah

Banks, following the domestic debt exchange programme, have recorded huge losses in the first quarter of the year. According to Chief Executive Officer of the Ghana Association of Banks, John Awuah, while the banks had anticipated such significant losses, they had taken a strategic position by agreeing to the DDEP. Describing the process of signing onto the programme as a very difficult decision for banks, he noted that should the banks have refused the economy would have tanked and the banks would have collapsed with it. “So it’s not child’s play. It’s been a very difficult decision. But the banks…

27 Apr

Banks Still Strong, Have Enough Liquidity Despite DDEP – Ghana Association Of Banks

wontumionlineBusinessDDEP, GAB, John Awuah

The Ghana Association of Banks (GAB) has stated that banks in the country are in good standing with their financial position despite losses incurred by the lenders due to the Domestic Debt Exchange Programme (DDEP). A recent assessment of financial statements of banks by Dr. Richmond Atuahene and K B Frimpong revealed that banks will lose additional ¢6 billion due to reduced coupon rate and the extension of the maturity period from five to 15 years. But speaking on the Super Morning Show today [April 27, 2023], the President of the GAB, John Awuah said the capital position of banks…

26 Apr

Blame Yourselves For Huge Losses In Government Securities – UGBS Senior Lecturer

wontumionlineBusinessBanks, DDEP, Dr. Benjamin Amoah

Banks must blame themselves for the huge losses recorded in their books because of heavy concentration of their portfolios in Government of Ghana securities. According to a Senior Finance Lecturer at the University of Ghana Business School, Dr. Benjamin Amoah, the banks must pay the price for failing to undertake financial intermediation. Majority of the banks in Ghana recorded losses last year, according to their 2022 Audited Financial Statement. This is as a result of the impact of the Domestic Debt Exchange Programme on their operations. Speaking to Joy Business, Dr. Amoah said banks must admit they have not done…

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…

15 Apr

No Second Round Of DDEP For Pension Funds – Ofori-Atta Assures

wontumionlineNewsDDEP, Domestic Debt Exchange Programme (DDEP), Finance Minister Ken Ofori-Atta, pension

Finance Minister, Ken Ofori-Atta, has explained that there will not be another round of domestic debt restructured. An earlier report had indicated that whiles the minister was making an address at the ongoing IMF/World Bank Spring meetings, he hinted at a possible debt restructuring targeted at pension funds. According to him, the statement he made was misconstrued to mean he said there would be a second round of DDEP. “We are not planning a second round of the domestic debt exchange programme for pension funds. I think it was a misunderstanding,” he is quoted by myjoyonline.com He maintained that the…

31 Mar

DDEP: Banks Loans To Businesses, Households To Fall Significantly – Fitch Solutions

wontumionlineBusinessBanks, DDEP, Fitch solutions, loans

Fitch Solutions has indicated that the banking sector loans will fall considerably in 2023, whilst deposit growth will decline marginally. It said Ghana’s client loan growth will ease from 30.2% year-on-year in 2022 to 18.0% in 2023. This is a result of the challenging macroeconomic backdrop, as banks remain uncertain about the possible fallout from the domestic debt restructuring, as well as base effects from very strong loan growth in 2022. “Whilst our nominal client loans growth forecast will still be in double digits in 2023, skewed by still elevated inflation, our real client loan growth forecast will be much…

15 Mar

Expect Coupon, Principal Payments On Bonds In 48hrs – Finance Ministry Assures Bondholders

wontumionlineBusinessbondholders, DDEP, ministry of finance, Senyo Hosi

The Ministry of Finance has assured that bondholders whose coupon and principal payments matured on February 6, 2023, and February 13, 2023 will receive their funds within the next 48 hours. The assurance comes after bondholders complained of not receiving their payments on Monday, March 13, 2023. According to a statement, the processes to settle the payments on outstanding bonds commenced on the March 13, 2023. “The initial instruction covers coupon and principal payments on bonds that matured on March 6, 2023 and February 13, 2023. Holders of the afore-listed bonds should therefore expect to receive their payments within the…

15 Mar

DDEP: Government Commences Payment On Outstanding Bonds

wontumionlineBusinessDDEP

The government has commenced coupon and principal payments on old bonds, the Ministry of Finance has said. “Following the press release issued by the Ministry of Finance dated 27th February, 2023, government is pleased to announce that processes to settle payments on outstanding bonds commenced yesterday, 13th March, 2023,” the ministry said in a statement. The initial instruction covers coupon and principal payments on bonds that matured on 6th February, 2023, and 13th February, 2023. Holders of the afore-listed bonds should therefore expect to receive their payments within the next 48 hours. Payment dates for subsequent maturities will be communicated…