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IMF board accepts Ghana’s $600 million loan programme payout

Published

11 months ago

January 20, 2024

The International Monetary Fund (IMF) has announced that its board has accepted a preliminary assessment of Ghana’s loan plan, enabling the immediate transfer of roughly $600 million under its $3 billion rescue scheme.

The decision was made following Ghana’s agreement with its official creditors to restructure $5.4 billion in loans, a crucial step towards obtaining the second tranche of IMF funds.

In 2022, Ghana sought financial assistance from the IMF as it struggled with its worst economic crisis in a decade, which coincided with skyrocketing public debt service expenses.

“All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met,” the IMF said in a statement.

According to the Fund, the government’s reform initiatives have improved growth, reduced inflation, and increased foreign reserves. The Fund predicted that the economy will expand by 2.3% in 2023 and 2.8% in 2024.

Following the announcement, Stéphane Roudet, the head of the IMF mission in Ghana, informed the authorities in a joint briefing that the central bank would have access to the tranche in a matter of hours. When asked if Ghana had to make this agreement in order to get the next $360 million tranche, Roudet responded, “What matters is that the government has sincere conversations… In the upcoming weeks, we plan to make significant progress.”

Finance Minister Ken Ofori-Atta announced at Friday’s briefing that the World Bank would meet on January 23 to authorise these disbursements.

VenturesNow

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.”