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IMF ‘optimistic’ over debt restructuring deal with Ghana

Published

12 months ago

January 10, 2024

Multilateral body, International Monetary Fund (IMF) is “optimistic” that a debt restructuring deal would soon be reached between its officials and Ghana.

As talks between Ghanaian authorities and the Official Creditor Committee, which is co-chaired by China and France, are showing “promising progress,” the agreement will pave the way for another $600 million IMF loan payment to the nation, according to IMF Resident Representative for Ghana, Leandro Medina.

“We are optimistic that an agreement will be reached soon, allowing to swiftly present the first ECF (Extended Credit Facility) programme review to our Executive Board,” he said via email.

After going into default on the majority of its external debt in December 2022, Ghana must negotiate restructuring agreements with government creditors, foreign bondholders, and other commercial lenders in order to carry out the IMF loan agreement and get out of its worst economic crisis in a long time.

Following news that Ghana’s government would shortly receive a draft term sheet from its official creditors to restructure $4.5 billion in debt, the country’s sovereign international dollar bonds saw an increase on Tuesday. According to Ghana’s Finance Minister, Ken Ofori-Atta, the draft term sheet would make it easier for the IMF Executive Board to approve the $4 billion bailout program’s $600 million payout.

According to Tradeweb data, the May 2029 maturity of Ghana’s international bonds saw the biggest increase, rising to 42.67 cents, with a rise of up to 1.1 cent on the dollar.

Ghana, a significant producer of cocoa, gold, and oil, and one of the first countries in Africa to default on its foreign debt, is going through the worst economic downturn in a generation, marked by double-digit inflation and spiralling public debt.

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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.”