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Ghana, official creditors set to meet over debt restructuring terms

Published

12 months ago

January 5, 2024

According to sources quoted by Reuters, Ghana’s official creditors are scheduled to meet on Monday to discuss restructuring some $5.4 billion in loans to the country.

The meeting is a significant step taken in the direction of obtaining the IMF’s next funding tranche. According to the sources, the meeting will likely centre around reaching a consensus regarding a “cut-off date”—the deadline beyond which new loans from bilateral creditors will not be restructured. Ghana’s debt rework has run into trouble with defining this date.

Ghana is restructuring its debt under the G20 Common Framework platform, which has been criticised for delays and divisions between creditor groups. The country currently owes about $13 billion to overseas bondholders.

Almost a quarter of Ghana’s $20 billion in external debt also designated for restructuring is held by the country’s bilateral lenders, which include the governments of China and France, who share co-chairship of the OCC.

Given that Ghana had defaulted earlier that month, some creditors are rumoured to favour December 31, 2022 as the deadline. To assist the world’s poorest nations in coping with the aftermath of the COVID-19 pandemic, the Group of 20 introduced its debt service suspension initiative (DSSI) on March 24, 2020, which is why some advocated for the same date.

The Paris Club of major creditor nations, which does not include China among its permanent members, will meet on Friday in advance of the OCC meeting on January 8, according to two sources.

Related Topics:DEBT CRISIS 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.

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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.”