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Ghana’s finance minister, Ken Ofori-Atta, assures retirees, debt swap deal ‘good for you’

Published

2 years ago

February 6, 2023

Ghana’s finance minister, Ken Ofori-Atta has assured a group of protesting retiree bondholders on Monday they were being offered a good deal.

The protest follows a move by the government of the struggling West African nation that pushes to get a domestic debt exchange over the line by Tuesday.

The minister told the group of over-60s protesting the debt exchange outside the finance ministry that the five-year maturity on offer was favourable given a third of them held instruments with maturities of more than 12 years, despite an interest rate cut to 15% from an average of 18.5%.

“Look into your heart and ask whether what has been offered is so injurious versus your contribution to our economy,” Ofori-Atta told five of the protesters after a larger group had left their earlier demonstration.

“Hand on heart I feel (the deal offered) is good for you and good for the nation.”

Ghana launched a debt swap plan in December as part of attempts to address a spiraling economic crisis, but it has struggled to convince bondholders to register, in part due to a lack of clarity over its terms and concerns about profitability.

Under the current arrangement, retirees below the age of 59 are being offered a 10% coupon rate.

Reacting to the minister’s position, Adu Anane Antwi, convener of the Pensioner Bondholders Forum, said “The minister has said they want 80% (of domestic bonds to be exchanged) to become successful.”

“We think if pensioners are left out of the programme they will still get their 80%.”

Ghana is currently in a dire economic and financial situation, the country approached the International Monetary Fund (IMF) in July to ask for financial help after soaring prices and economic hardship spurred street protests.

It secured a staff-level agreement with the IMF in December for a $3 billion loan, but the money’s approval is contingent on it restructuring its debt of 467.4 billion cedis ($39 billion).

Related Topics:Debt Swap Deal Featured Ghana

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”