VenturesNow

Ghana’s bondholders, govt to discuss debt restructuring next week

Published

6 months ago

June 15, 2024

Following a deal struck with official creditors earlier this week, Ghana and its bondholders will resume negotiations next week to work out a debt restructuring plan for $13 billion in foreign notes, according to four sources cited by Reuters.

Ghana, a producer of cocoa and gold, failed to pay back the majority of its $30 billion in external debt in 2022 due to the COVID-19 pandemic, the conflict in Ukraine, and sharp increases in interest rates worldwide that increased the cost of borrowing. It had initiated formal negotiations in mid-March with two groups of bondholders: one comprising regional African banks and another of Western asset managers and hedge funds.

However, due to the planned deal’s failure to meet the requirements of the International Monetary Fund’s debt sustainability analysis (DSA), negotiations came to a standstill in April. Currently, both parties are under pressure to finalize an agreement before the elections in December.

Hours after the government and official creditors wrapped up their agreement on Tuesday, according to people familiar with the matter who spoke with Reuters, government advisors had gotten in touch with their counterparts at the bondholder organization.

The individuals, who wished to remain anonymous, claimed that the government advisors provided information on both the official creditor agreement and specifics from the most recent debt sustainability review from the IMF.

“People are incentivized,” one of the sources said. “Things can happen quickly.”

An official response is yet to be grated by Ghana’s Finance Ministry on the disclosure. Meanwhile, financial advisors are presently examining the given information, according to two of the sources, who also stated that it will serve as the basis for discussions starting next week.

Prior negotiations to establish an agreement that satisfied the IMF’s debt-sustainability targets, which were outlined in the initial assessment of the fund’s $3 billion loan program with Ghana, broke down with two parties that held about $13 billion of the country’s foreign bonds.

Nevertheless, given that Ghana’s economy has since recovered, two sources stated that they anticipated the agreement would be in line with the fund’s modified DSA in light of the second review’s conclusion in early April.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

22 hours 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.

VenturesNow

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.”