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Confidence In Foreign Exchange Market To support Cedi’s Rally
13 Dec

Confidence In Foreign Exchange Market To support Cedi’s Rally

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Confidence in the foreign exchange market is expected to support the cedi’s rally against the US dollar and the other major foreign currencies in the coming weeks. This follows rising investor sentiments that the country and the International Monetary Fund (IMF) will reach a Staff-Level agreement today. According to Databank Research, it expects a possible IMF programme to turn the economy around. “The Ghana cedi started to see gains against the major trading currencies after the government launched the domestic debt exchange programme. This contributed to easing the pressures as the improved visibility of Ghana’s economic outlook calmed investors’ fears…
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IMF Reaches Staff-Level Agreement on a $3bn, Three Years Extended Credit Facility with Ghana
13 Dec

IMF Reaches Staff-Level Agreement on a $3bn, Three Years Extended Credit Facility with Ghana

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An International Monetary Fund (IMF) team led by Mr. Stéphane Roudet, Mission Chief for Ghana, visited Accra during December 1 – 13, 2022, to discuss with the Ghanaian authorities IMF support for their policy and reform plans. At the end of the mission, Mr. Roudet issued the following statement: I am pleased to announce that the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion or about US$3 billion. The economic program aims to restore macroeconomic stability and debt sustainability while…
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Economy Is In Crisis, We Need Debt Exchange Programme To Get IMF Staff-Level Agreement – Abena Osei Asare
08 Dec

Economy Is In Crisis, We Need Debt Exchange Programme To Get IMF Staff-Level Agreement – Abena Osei Asare

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A Deputy Finance Minister, Abena Osei Asare, has stated that Ghana needs the Debt Exchange Programme to proceed to the next stage of negotiations with the International Monetary Fund (IMF). According to her, a successful execution of the programme is key to securing the programme. Speaking at a Post Budget Forum organised by auditing and accounting firm, Deloitte Ghana, she urged all investors to participate in the programme. “The economy is in crisis and we know it’s a difficult time for us. For us to get to the next stage of the IMF programme we need the debt exchange program…
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Ghana Can’t Sign Onto IMF Programme Without Agreeing To Debt Restructuring Exercise – Quartey
07 Dec

Ghana Can’t Sign Onto IMF Programme Without Agreeing To Debt Restructuring Exercise – Quartey

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The Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey has said Ghana cannot sign onto a programme with the International Monetary Fund (IMF) without agreeing to a debt restructuring exercise. Currently, the government is in discussions with the Fund for a possible programme to help deal with the economic situation. The Finance Minister Ken Ofori-Atta on Monday December 5 launched the Debt Exchange programme to invite holders of domestic debt to voluntarily exchange approximately GHS137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package…
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Ghana’s Public Debt Is Unsustainable – Ofori-Atta
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.…
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Debt Exchange Programme Is Key Requirement For IMF deal – Ofori-Atta
05 Dec

Debt Exchange Programme Is Key Requirement For IMF deal – Ofori-Atta

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The Minister of Finance, Ken Ofori Atta, has admitted that the launched Debt Exchange Programme is part of a key requirement for the government to get an economic deal from the International Monetary Fund. According to him, the government has no choice but to undertake the debt restructuring programme to put the debt level on a sustainable path. An IMF mission team is presently in the country to continue discussions with the authorities on the country’s post-COVID programme for economic growth and associated policies and reforms that could be supported by a new IMF lending arrangement. The Finance Minister however…
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IMF Deal Likely To Give Ghana $3bn – Governor Addison
28 Nov

IMF Deal Likely To Give Ghana $3bn – Governor Addison

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Governor of the Bank of Ghana (BoG) Dr Ernest Addison has said the negotiations with the International Monetary Fund (IMF) is likely to give Ghana $3 billion over a 3-year period. He said this while answering questions at the Monetary Policy Committee (MPC) press conference in Accra on Monday, November 28. Ghana is currently seeking a programme with the Fund. Government officials including the Finance Minister Ken Ofori-Atta have indicated that the negotiations are going smoothly. During the MPC press conference, Dr Addison announced that the policy rate has been increased to 27%. He also indicated that inflation has remained elevated. This is driven largely by food…
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BoG To Continue Policy Rate Hiking Cycle As Part Of IMF Condition – Fitch Solutions
21 Nov

BoG To Continue Policy Rate Hiking Cycle As Part Of IMF Condition – Fitch Solutions

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The Bank of Ghana will continue its policy rate hiking cycle, increasing the benchmark interest rate to 27% by the end of 2023. According to international research institution, Fitch Solutions, this it believes will bring real rates into positive territory. “We expect that this will bring real rates into positive territory, stimulating capital inflows and providing support to the exchange rate, which will allow the cedi to depreciate at a slower pace over 2023”. Given a high inflation, Fitch Solutions, stressed that it expects the Bank of Ghana to tighten monetary policy as a condition of the International Monetary Fund…
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Ghana And The IMF: Debt Restructuring Must Go Hand-In-Hand With Managing Finances Better
21 Nov

Ghana And The IMF: Debt Restructuring Must Go Hand-In-Hand With Managing Finances Better

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Ghana is struggling with managing its debt, 20-year high inflation, a weak currency, and rising inequality. For example, inflation rose to 33.9% in August 2022 from 9.7% a year earlier, while the cedi has depreciated by 41% year-to-date against the US dollar. These vulnerabilities have been worsened by the aftershocks of the ongoing Russia–Ukraine war and the COVID-19 pandemic. These challenges have forced Ghana’s government to approach the International Monetary Fund (IMF) for an economic support package. Part of the engagement will involve a new assessment of the sustainability of the country’s debt. Debt sustainability analysis classifies countries into four bands: low risk, moderate risk, high risk, and in debt distress. This…
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