debt restructuring Archives - Page 2 of 3

26 Apr

Debt Restructuring: Ghana’s Top Banks Record First Massive Loss

wontumionlineBusinessdebt restructuring

Ghana’s move to restructure its local-currency and overseas debt has resulted in the first loss on record for two of the West African nation’s top banks. GCB Bank Plc, the country’s largest lender by assets, posted a 593.4 million cedis ($50.5 million) net loss for the year to end-December, its first since 1993 when Bloomberg started maintaining data. Standard Chartered Bank Ghana Ltd., the biggest by market value, reported a loss of 297.8 million cedis. Banks operating in West Africa’s second-largest economy have taken a hit of about $1.4 billion, according to Bloomberg calculations, as Ghana restructures most of its…

20 Apr

Organised Labour Meets On Govt’s New Debt Restructuring Proposal

wontumionlineBusinessdebt restructuring, imf

Organised Labour will today, Thursday, April 20, meet to consider the Ministry of Finance’s proposed Alternative Offer for Pension Funds. The Ministry is said to have written to the Board of Trustees of Pension Funds for participation in the new debt restructuring programme. However, some labour unions have served notice they will not participate in the programme just as resolved in December ahead of the Domestic Debt Exchange Programme (DDEP). “UTAG reiterates its earlier resolve on the Domestic Debt Exchange Programme contained in a communique with reference UTAG/NAT/2022/EM-012 and dated 7th December 2022 that we are still unable to participate in any…

12 Apr

Cedi Gains Ground On Debt Restructuring Talks Progressing

wontumionlineBusinessCEDI, debt restructuring

The cedi has continued to gain ground in the foreign exchange market, thanks to progress made in negotiations with bilateral creditors. Available data show that the domestic cedi rallied against its major trading currencies last week on the interbank market. The local unit gained 0.77 percent w/w against the American greenback, ending the week at GH¢10.93 per dollar. Similarly, the British pound and the euro both lost 0.19 percent week-on-week to the cedi on the interbank market. On the spot market, the cedi gained 5.99 percent w/w against the dollar to trade at GH¢10.85 reducing its year to date (YTD)…

05 Apr

Cedi To Remain Stable In Near Term – Economic Analyst

wontumionlineBusinessCEDI, debt restructuring, dollar, Kweku Arkoh-Koomson

Economic Analyst, Kweku Arkoh-Koomson, is projecting a stable cedi in the near term following the successful completion of the external debt restructuring. The Ghana cedi gained 3.11% to the US dollar last week to narrow its year-to-date losses on the forex or retail market to about 17%. “As we wait for an IMF deal this second quarter, we observe that government in the 2023 budget reiterated that the budget will be financed by non-concessional loans. Looking at how these non-concessional loans will also boost local reserves and improve FX liquidity, if nothing at all, the cedi will stabilise,” he said.…

30 Mar

Debt Restructuring To Weigh Considerably On Banks In 2023 – Fitch Solutions

wontumionlineBusinessdebt restructuring

International research firm, Fitch Solutions has indicated the domestic debt restructuring exercise will considerably weigh on banks operating in Ghana during the 2023 fiscal year. According to the firm, the Domestic Debt Exchange Programme (DDEP) will affect the banking sector in two main ways. Fitch Solutions explained that, “banks are entering this phase with a mixed capital picture, with some banks very close to the minimum regulatory capital level of 13.0%”. It further detailed that capital buffers at industry level have also declined throughout 2022 although it peaked in December. Fitch noted the decline can be attributed to mark-to-market losses…

20 Mar

Ofori-Atta Leaves For China For Debt Restructuring Negotiations

wontumionlineBusiness, NewsChina, debt restructuring, Ken Ofor-Atta

Finance Minister, Ken Ofori Atta, has left Accra for China to have negotiations on debt restructuring with officials of that country. Sources say the Finance Minister left over the weekend via Addis Ababa where he is attending the UNECA High-Level Ministers meeting on the Global Financial Architecture. After that meeting, Mr. Ofori-Atta, is expected to head to China, possibly on March 22, 2023. The Minister who is leading the government delegation is expected to continue bilateral talks with China as well as seek financial assurances for Ghana’s programme with the International Monetray Fund. The trip was postponed to the end…

05 Mar

We Will Address Arrears As Part Of External Debt Restructuring – Government To Ipps

wontumionlineBusiness, Newsdebt restructuring, IPPs, Ken Ofori Atta, PPAs

Government has assured the Independent Power Producers (IPPs) that it is taking the necessary steps to address the energy sector arrears as part of its external debt restructuring. This is to forestall the build-up of future arrears and improve on efficiency within the sector. In a letter to the IPPs signed by the Finance Minister, Ken Ofori-Atta, sighted by Joy Business, government said it has rolled out a raft of structural reforms, aimed at generating sufficient cash to ensure payments in line with the respective Power Purchase Agreements (PPAs). These measures include but are not limited to the Public Utilities…

02 Mar

Firstrand Writes-Off 57% Of Ghana Bonds Value Amid Debt Restructuring

wontumionlineBusinessdebt restructuring, FirstRand, Ghana bonds

FirstRand Limited, Africa’s biggest bank by market capitalization, has written off more than half the value of its holdings of Ghanaian bonds as the country grapples with a restructuring of its sovereign debt. The South African lender disclosed in a statement on Thursday, March 2, 2023. The bank said it had impaired $27.3 million to cover potential losses from Ghana’s debt revamp and reduced income from associates. The write-down includes domestic and foreign-currency bonds held as of December. “We’ve marked down both the local-currency and Eurobonds, and we’ve taken a haircut at 57% of face value,” Chief Executive Officer Alan…

05 Feb

Encourage China to support our debt restructuring efforts – Akufo-Addo to Germany

wontumionlineBusiness, News, TrendingAkufo-Addo, China, debt restructuring

President Nana Akufo-Addo on Friday urged Germany to “encourage” China, an ad hoc member of the Paris Club, to support Ghana’s debt restructuring efforts. He said it is critical that the Paris Club swiftly establishes, with the participation of other official creditors, a creditors committee, to support the efforts that would enable Ghana to restore economic growth. The President made the call when the visiting German Finance Minister, Christian Lindner called on him at the Jubilee House, Accra. Linden, who was the head of a delegation from his country, held bilateral talks with the President aimed at boosting relations and…

26 Jan

Financial Crisis Has Affected My GH¢106k Investment – Agyinasare

wontumionlineNewsBishop Charles Agyinasare, debt restructuring, financial crisis

It is now dawning on many, the harsh nature of the current crisis. The phenomenon appears to be no respecter of persons as a spiritual leader in Ghana has shared his frustrations with his congregation. Founder of Perez Chapel International, Bishop Charles Agyinasare was addressing his church members when he dovetailed into a lamentation about the country’s economic downturn. While individual bondholders cry out to the Finance Minister for an exemption to avoid a haircut, the preacher says he has found himself in a similar predicament. “Our money is failing, if it has not already failed. Because our banks cannot…