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Sources reveal Ghana’s official creditors agree restructuring date

Published

11 months ago

January 12, 2024

According to sources quoted by Reuters, Ghana’s official creditors have agreed to restructure debts that were extended to the country up until December 2022.

The agreement comes as the West African country closes in on a key step required to advance its restructuring.

An agreement between Ghana and its official creditors would allow the International Monetary Fund (IMF) Executive Board to authorise the payment of $600 million from its $3 billion bailout plan.

The “cut-off date”—the date beyond which newly signed loans with bilateral creditors will not be restructured—has come up as a point of contention in the negotiations that has prevented an agreement.

Ghana, one of the first nations in Africa to default on its foreign debt and a major producer of oil, gold, and cocoa, is experiencing its worst economic downturn in a generation, characterised by double-digit inflation and skyrocketing public debt.

About 25% of Ghana’s $20 billion in external debt that is designated for restructuring is held by bilateral lenders, notably China and France, who jointly chair the Official Creditor Committee (OCC).

While some creditors had pushed for March 24, 2020, when the Group of 20 introduced its debt service suspension initiative (DSSI) to help the world’s poorest countries cope with the fallout from the COVID crisis, others were said to prefer December 31, 2022, as the deadline, given Ghana’s earlier default that month.

Related Topics:Featured Ghana Official Creditors

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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.”