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Ghana agrees $1.36 billion local debt restructuring with banks

Published

1 year ago

June 28, 2023

Ghana has agreed to a deal to restructure its local debt with banks, a total of 15 billion Ghana Cedis ($1.36 billion) of locally issued US dollar bonds and cocoa bills.

Domestic dollar bonds, cocoa bills, pension funds, and debt to the central bank are included in the debt to satisfy the short-term liquidity requirements of the nation’s cocoa regulator, Cocobod.

The government and the lenders have agreed to convert 6.9 billion Ghana Cedis worth of domestic US dollar bonds into two-term loans with new lower rates, according to sources in the finance ministry and a local bank that holds some of the bonds.

Last week, Finance Minister, Ken Ofori-Atta hinted that his country intends to complete its debt restructuring deals soon and the process of getting a memorandum of understanding (MoU) with the creditors was on.

The sources at the ministry confirmed that the memorandum of understanding for the domestic US dollar bonds was with the Securities and Exchange Commission for approval. “Our target is to conclude it by the end of June.”

“They (the banks) understand that they are better off getting a restructuring because we may not be able to pay the coupon,” the other finance ministry source said.

Even though some banks are hanging out for 13%, another 8.1 billion Ghana Cedis worth of cocoa bills will be transformed into a new bond with a 12% return, according to the banking source.

To be able to fulfill an International Monetary Fund (IMF) deadline and concentrate efforts on negotiations with foreign creditors, Ghana is hoping for new terms for the restructuring of its domestic debt after the first phase of its domestic debt exchange ended in February with 85% of eligible bondholders participating.

Ghana has defaulted on both its local and international debt with its creditors, mainly China, the World Bank, and the International Monetary Fund, and has in recent years been occupied with restructuring its debt. Elsewhere in southern Africa, Zambia also recently agreed to debt restructuring with its international creditors.

Related Topics:Featured Ghana Ken Ofori-Atta

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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.

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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.”