debt Archives - Wontumi Online

14 Feb

Ghana faces imminent ‘dumsor’ crises as Karpowership threatens shutdown over $370m debt

MAN Wontumi0 CommentsNewsdebt, dumsor, Ghana, Karpowership

The government has been informed by the operators of the Karpowership in the Western Region’s Aboadze that if the debt owed to them is not paid quickly, it will not be able to continue providing power. This was disclosed by the company’s representatives during a meeting last Monday at the ministry in Accra between officials of the Karpowership barge and John Abdulai Jinapor, the Minister of Energy and Green Transitions. Karpowership has threatened to shut down its generating plant if the Electricity Company of Ghana (ECG), the power distribution company, does not pay the debts totaling more than $370 million.…

26 Aug

BOST Clears Debts and Overcomes Pipeline Controversy-MD Highlights Achievements

wontumionlineFeatured, News, TrendingBOST, debt, Pipeline Controversy

Bulk Oil Storage and Transportation (BOST) has cleared all its debts, including a significant 160 million cedis bank debt, with the help of the government and its own funds. Managing Director, Dr. Edwin Alfred Nii Obodai Provencal revealed that the company had also paid rent fees of over 7 million dollars for pipelines that were not shipped to Ghana due to a change in government. Speaking to Kwaku Dawuro on Movement In The Morning show on Movement TV, the MD said that despite this setback, BOST has bounced back and is now focused on maintaining its profitability and efficiency. "We've…

09 Aug

Ministry Of Finance Announces Measures To Address Debt Crisis And Reduce Borrowing

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The Ministry of Finance, following the recent domestic debt restructuring and ongoing negotiations with international creditors, has implemented strategies to stabilise the economy. Deputy Minister of Finance, Dr Alex Ampabeng discussed some measures to provide a clear roadmap out of the crisis. “What we are doing with GRA, and actually I am leading that with the Ghana Revenue Authority, is to reform a taxpayer database. We want to clean it to the point where the less active ones, we are able to track individuals and their businesses with the help of Ghana card, with the help of digitization, with the…

29 Sep

Government To Borrow ¢2.57Bn On September 29 To Refinance Maturing Bills

wontumionlineBusinessBoG, debt, T-Bills

The government will borrow about ¢2.57 billion today September 29, 2023, to refinance maturing bills worth ¢2.41 billion. This is coming after the country’s debt went up by about ¢6.3 billion between April and June 2023 to reach ¢575.5 billion. With improved liquidity and lower refinancing pressure, analysts expect the treasury to achieve the auction target. The Monetary Policy Committee (MPC) of the Bank of Ghana left policy rate unchanged at 30.00% on Monday September 25, 2023, citing the considerable decline in upside inflation pressures. The decision leaves the cumulative hikes for this year at 300 basis points. Databank Research…

26 Jul

Government Debt To IPPs To Hit $2.2Bn By July 31, 2023

wontumionlineBusinessdebt, IPPs

The government’s indebtedness to the Independent Power Producers (IPPs) is expected to hit $2.2 billion by the end of July 2023. To this end, the IPPs will convey an emergency meeting tomorrow July 27, 2023, to strategise on how to retrieve some of the debt owed them by the government. They have declined to give any further comment until after the emergency meeting. Joy Business is learning that the IPPs are unhappy because the government has breached its promise to settle part of the debt and will not hesitate to cut power supply to the national grid. They had earlier…

27 Feb

Ghana’s Debt-To-GDP To Decline To About 58% By 2026 Based On 30% Haircut On External Debt – S&P

wontumionlineBusinessdebt, debt to GDP, fiscal consolidation, Haircut

Ghana’s debt to Gross Domestic Product (GDP) ratio (excluding guaranteed debt) would decline to about 58% of GDP by 2026, rating agency, S&P Global has predicted. This is from about 80% of GDP at year-end 2022, based on an exchange rate of ¢10.15 to $1 versus current spot exchange rates of about ¢12.86. However, this is based under a scenario of a 30% haircut on external debt and assuming that the dollar value of Ghanaian GDP over the next three years remains close to last year’s figure of $67 billion — calculated at average exchange rates. This, it said, assumes…

05 Dec

Ghana’s Public Debt Is Unsustainable – Ofori-Atta

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The Finance Minister Ken Ofori-Atta has said the Debt Sustainability Analysis (DSA) demonstrated unequivocally that Ghana’s public debt is unsustainable. He said the that the government may not be able to fully service its debt down the road if no action is taken. Indeed, he said, debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while our total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of our GDP. This is why we are today announcing the debt exchange which will help in restoring our capacity to service debt.…

07 Oct

Ghana’s Debt Stock Up ¢9bn To ¢402.4bn In July 2022 – BoG

wontumionlineBusinessBoG, debt, debt to GDP, Domestic debt, external debt, summary of Economic and financial data

Ghana’s public debt stock went up by ¢9 billion in July 2022 to ¢402.4 billion, the October 2022 Bank of Ghana Summary of Economic and Financial Data has revealed. This is equivalent to 68% of Gross Domestic Product, and is in sharp contrast to the projected 104.6% of debt to GDP ratio in 2022 by the World Bank. In dollar terms, the country’s debt dropped marginally to $53.2 billion in July 2022, from $54.4 billion in June 2022. Based on the data, the nation did not borrow fresh funds from the international market during the period. However, the debt level…

22 Sep

Ghana Faces Possible Debt Default – Senior Director At Fitch

wontumionlineBusinessdebt, debt default, eurobonds, fitch, mahin dissanayake

A Senior Director at ratings agency, Fitch, Mahin Dissanayake, has warned Ghana of a possible sovereign debt default, saying, any kind of debt restructuring could threaten the local banking sector. According to him, “default is a real possibility”. Speaking at a press conference, Mr. Dissanayake said “Ghanaian banks hold large volumes of government securities, so debt distress is going to put a lot of stress on the banks” he said. He explained that “the operating environment is looking very fragile.” According to him, reports that Ghana is planning to restructure that local currency debt as part of an IMF deal…