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Ghana’s debt restructuring deals to be concluded soon— Finance Minister

Published

2 years ago

June 19, 2023

Ghana’s Finance Minister, Ken Ofori-Atta has revealed that the West African country intends to complete its debt restructuring deals soon.

Ofori-Atta said Ghana was in the process of getting a memorandum of understanding (MoU) with the creditors. He further revealed that the debt restructuring would be done before the next review of its $3 billion loan from the International Monetary Fund (IMF).

“We’ve successfully worked with the Paris Club and other creditors to determine the parameters for official debt restructuring under the G20 common framework for debt treatment,” Ofori-Atta told journalists in Accra on Sunday.

“We expect to finalise these negotiations before the next review, which is in September,” he said.

“In the coming weeks, we will seek to complete the MoU on terms with bilateral debt treatment,” he added.

Ghana is experiencing a financial crisis which led to a default on its foreign debt. It is currently advocating for debt restructuring with its creditors, namely China, the World Bank, and the International Monetary Fund. Its GDP growth is anticipated to decrease from 5.4% in 2021 to 3.2% in 2022.

To successfully implement a $3 billion loan agreement from the IMF, it is negotiating a decrease of $10.5 billion in interest payments on its external debt over the next three years.

It is also battling severe inflation, as rate rose to 42.2% year on year in May, up from 41.2% in April.

According to the minister, the government remains keen on economic reforms to stabilise the Ghanaian economy, and discussions are also ongoing with private creditors, and Eurobond investors on external debt to reach an agreement with private creditors in the shortest possible time.

Related Topics:Debt restructuring 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.”