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Tag: International Monetary Fund

  • BREAKING: IMF reaches Staff-Level Agreement with Ghana on a $3 billion ECF

    The Ghanaian government and the International Monetary Fund have agreed at the staff level on economic policies and reforms that would be supported by a new, $3 billion, three-year Extended Credit Facility (ECF) arrangement.

    Stéphane Roudet, the IMF’s Ghana Mission Chief, said in a statement posted on the website of the Fund: “I am pleased to announce that the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion, or roughly US$3 billion.

    The economic agenda intends to establish the groundwork for higher and more inclusive growth while restoring macroeconomic stability and debt sustainability.

    The statement however noted that the staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors.

    “The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country,” the statement read in part.

    “Key reforms aim to ensure the sustainability of public finances while protecting the vulnerable. The fiscal strategy relies on frontloaded measures to increase domestic resource mobilization and streamline expenditure. In addition, the authorities have committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer program for vulnerable households and improving the coverage and efficiency of social spending,” it added.

    “Structural reforms will be introduced to underpin the fiscal strategy and ensure a durable consolidation. These include developing a medium-term plan to generate additional revenue and advancing reforms to bolster tax compliance. This will help create space for growth-enhancing measures and social spending. Efforts will also be made to strengthen public expenditure commitment controls, improve fiscal transparency (including the reporting and monitoring of arrears), improve the management of public enterprises, and tackle structural challenges in the energy and cocoa sectors. The authorities are also committed to further bolstering governance and accountability.

    “To support the objective of restoring public debt sustainability, the authorities have announced a comprehensive debt restructuring. Sufficient assurances and progress on this front will be needed before the proposed Fund-supported program can be presented to the IMF Executive Board for approval.

    “Reducing inflation, enhancing resilience to external shocks, and improving market confidence are also important program priorities. Accordingly, the Bank of Ghana will continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers. As part of the authorities’ debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved.

    “IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies. The IMF team has also continued to engage with other stakeholders. Staff would like to express their gratitude to the Ghanaian authorities, Parliament’s Finance Committee and all the private sector, trade union, and civil society representatives for their open and constructive engagement over the past few months.”

  • FULL TEXT: IMF, Ghana reach Staff-Level Agreement under ECF of US$3 billion

    IMF Reaches Staff-Level Agreement on a $3 billion, three years Extended Credit Facility with Ghana

    December 12, 2022

    * IMF staff and the Ghanaian authorities have reached staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.

    * The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery. To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation.

    * In addition to a frontloaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the program envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.

    Accra, Ghana: An International Monetary Fund (IMF) team led by Mr. Stéphane Roudet, Mission Chief for Ghana, visited Accra during December 1 – 13, 2022, to discuss with the Ghanaian authorities IMF support for their policy and reform plans.

    At the end of the mission, Mr. Roudet issued the following statement:

    I am pleased to announce that the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion or about US$3 billion. The economic program aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth. The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors.

    “ The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country.

    “Key reforms aim to ensure the sustainability of public finances while protecting the vulnerable. The fiscal strategy relies on frontloaded measures to increase domestic resource mobilization and streamline expenditure. In addition, the authorities have committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer program for vulnerable households and improving the coverage and efficiency of social spending.

    “Structural reforms will be introduced to underpin the fiscal strategy and ensure a durable consolidation. These include developing a medium-term plan to generate additional revenue and advancing reforms to bolster tax compliance. This will help create space for growth-enhancing measures and social spending. Efforts will also be made to strengthen public expenditure commitment controls, improve fiscal transparency (including the reporting and monitoring of arrears), improve the management of public enterprises, and tackle structural challenges in the energy and cocoa sectors. The authorities are also committed to further bolstering governance and accountability.

    “To support the objective of restoring public debt sustainability, the authorities have announced a comprehensive debt restructuring. Sufficient assurances and progress on this front will be needed before the proposed Fund-supported program can be presented to the IMF Executive Board for approval.

    “Reducing inflation, enhancing resilience to external shocks, and improving market confidence are also important program priorities. Accordingly, the Bank of Ghana will continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers. As part of the authorities’ debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved.

    “IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies. The IMF team has also continued to engage with other stakeholders. Staff would like to express their gratitude to the Ghanaian authorities, Parliament’s Finance Committee and all the private sector, trade union, and civil society representatives for their open and constructive engagement over the past few months.”

    Source: Ghanaweb

  • BREAKING: Ghana reaches $3bn Staff-Level Agreement with IMF

    The International Monetary Fund (IMF), on Monday, December 12, 2022, reached a Staff-Level Agreement with the government on economic policies and reforms after a six-month engagement.

    The Staff-Level Agreement, which is reached between a country requesting for Fund and the IMF Mission, is subject to the approval of the IMF Management and Executive Board and receipt of the necessary financing assurances before loans are granted.

    However, Management and Executive Board’s approval is conditioned on the completion of a debt restructuring exercise to bring debt stock to sustainable levels.

    In a statement,  the Bretton Woods institution disclosed that, all other things being equal, Ghana will be supported by a three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.

    The Reform Program, it says, aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

    The programme also envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.

    According to IMF, these reforms include developing a medium-term plan to generate additional revenue and advancing reforms to bolster tax compliance.

    “ The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country.”

    “Key reforms aim to ensure the sustainability of public finances while protecting the vulnerable. The fiscal strategy relies on frontloaded measures to increase domestic resource mobilization and streamline expenditure. In addition, the authorities have committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer program for vulnerable households and improving the coverage and efficiency of social spending,” part of the statement added.


    The IMF noted that the structural reforms will strengthen public expenditure commitment controls, improve fiscal transparency (including the reporting and monitoring of arrears), improve the management of public enterprises, and tackle structural challenges in the energy and cocoa sectors.

    It further added that “the authorities are also committed to further bolstering governance and accountability”.

    Already, the government has launched a comprehensive debt operation in order to support the objective of restoring public debt sustainability,

    This includes the recently implemented Domestic Debt Exchange programme.

    Debt Exchange Programme

    As part of the conditions to receive support from the IMF, the Akufo-Addo government introduced a debt restructuring programme to salvage Ghana’s dwindling economy.

    The Debt restructuring Programme entails a government or institution refinancing its current debt commitments in order to avoid defaulting on its obligations or declaring bankruptcy.

    Under the new programme which took effect on Tuesday, December 1, 2022, domestic bondholders are required to exchange their current bonds for a new set of four bonds maturing in 2027, 2029, 2032 and 2037.

    This means that bondholders will not be able to receive any interest in 2023.

    Announcing the program, Finance Minister, Ken Ofori-Atta noted that the domestic debt exchange is part of a more comprehensive agenda to restore debt and financial sustainability.

    Background

    Opposing suggestions for an IMF programme to bail Ghana out of its economic woes, the Akufo-Addo government in July 2022, made a U-turn and commenced official engagement with the IMF. 

    Not long after its decision, an IMF staff team led by Carlo Sdralevich visited Accra to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by a Fund lending arrangement.

    The IMF team met with Vice President Bawumia, Finance Minister Ofori-Atta, and the Governor of the Bank of Ghana.

    Dr. Ernest Addison. The team also met with the Parliament’s Finance Committee, Civil Society Organizations (CSO), and development partners, including UNICEF and the World Bank, to engage on social spending.

    The IMF/World Bank and the government undertook a debt sustainability analysis (DSA) to inform the programme negotiations and affirmed the assertion that Ghana’s economic crisis has been exacerbated as a result of the COVID-19 pandemic and the Russia-Ukraine war.

     

  • IMF and the government will announce a staff-level agreement on December 13 – Reports

    A joint news conference with the Bank of Ghana and the International Monetary Fund was scheduled to take place on Monday, December 12, according to the Ministry of Finance (IMF).

    The conference was scheduled to take place at the Ministry of Finance on Tuesday, December 13, 2022, starting at 10 am, according to the press announcement.

    GhanaWeb sources have intimated that the three parties are prepared to reveal a specific resolution following months of negotiations as the government looks for a bailout, despite the fact that virtually little more was divulged regarding the matter to be discussed.

    According to our sources, the IMF delegation visiting Ghana is anticipated to declare that it has secured a staff-level agreement with the government of Ghana for a FUND program.

    The sources, stressed that as at yesterday, there remained some critical issues that needed to be “ironed out” before today’s formal announcement.

    The Stephane Roudet-led IMF team has been in town since December 1, with the main mission of following up on engagements with Government on its COVID-19 Economic Recovery Program.

    Government recently announced a Domestic Debt Exchange programme, which is laregly aimed at stabilizing the economy. The move which constitutes a domestic debt default status is seen by experts as part of conditionalities to access the FUND support.

    What is a Staff-Level Agreement?

    According to Ghanabusiness.com, a Staff-Level Agreement is reached between a country requesting for Fund and the IMF Mission subject to the approval of the IMF Management and Executive Board and receipt of the necessary financing assurances before loans are granted.

    The IMF expatiates further on modalities from the agreement through to eventual approval of the agreement.

    End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country.

    The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

    Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

    Ghana’s economic headwinds:

    The economy is facing major headwinds that have been characterized by galloping inflation, consistent depreciation of the cedi and general high cost of living and of doing business.

    The government is hoping to reach a deal with the IMF for an economic support programme aimed at shoring up the economy and easing the burden on ordinary Ghanaians.

    President Akufo-Addo and his government have come under heavy scrutiny for failing to address the current economic challenges in the country.

    The prices of goods and services have been continuously rising all year round, with inflation currently at over 40 per cent.

    The Ghana cedi has been ranked the worst currency in the world among 148 currencies tracked by Bloomberg, overtaking Sri Lanka’s rupee, having depreciated by nearly 50 per cent so far in 2022.

  • Ofori-Atta Must Go: I’m not aware of any meetings with Akufo-Addo – NPP MP

    A meeting between President Nana Addo Dankwa Akufo-Addo and members of the Majority Caucus has been rejected by Central Member of Parliament Kwame Anyimadu-Antwi in response to demands for the resignation of Minister of Finance Ken Ofori-Atta.

     

    Despite claims to the contrary made by the majority leader Osei Kyei-Mensah-Bonsu, the call that started with about 60 MPs and eventually grew to 89 MPs was not the position taken by the Majority Caucus.

     

    When MPs opted to allow Ofori-Atta to continue in his position temporarily on two conditions, Anyimadu Antwi claimed to Joy FM in Accra on December 11 that he was unaware of a widely reported discussion at the president.

    “I am not aware that we have met the president on this. Apart from not being part of that meeting, I am not aware of any meeting,” he said.

    Calls from within the governing New Patriotic Party (NPP) for Ofori-Atta‘s dismissal over the economic downturn has been increasing over the last few months especially after Ghana went to the International Monetary Fund (IMF) to seek a bailout.

    Amid threats by the ‘Ken Must Go’ MPs to boycott government business led by the embattled minister, the presidency convened a meeting where concessions were made.

    Among others that Ofori-Atta should present the 2023 budget and see through the Appropriation Bill and to also conclude ongoing round of talks with the IMF with government eyeing a staff-level agreement for a programme by end of the year.

    After the ‘rebel’ MPs reignited their call for the minister’s dismissal, the NPP national leaders also held a meeting with the Caucus where it was agreed that they will stick to the agreement reached with the president.

  • The IMF expresses concerns about African nations’ excessive borrowing

    The rate at which African nations were amassing debt by taking on more borrowing alarmed the International Monetary Fund.

    Other international organizations, such as rating agencies, raised concern about Africa’s ability to pay back its loans.

    According to the IMF, 20 of the continent’s 54 nations were close to or in a state of distress as of 2019.

    Record commodity prices and low global interest rates have encouraged African countries to borrow as they did in the 1990s, but now some are struggling to pay up as their revenue slows along with economic growth.

    Government debt as a percentage of gross domestic product in sub-Saharan Africa has doubled in the past decade, heading back toward the level it reached in 2000.

    International Monetary Fund Managing Director Kristalina Georgieva said in November this is a cause for concern. Of the 54 countries on the continent, 20 are near or at distressed levels, according to the IMF, which means they face difficulties honoring their obligations.

    African governments have raised about $26 billion in international markets this year, from close to $30 billion in 2018, as they took advantage of investors’ thirst for returns in a world awash with negative yields.

    Volatile currencies across the continent increase the risks of borrowing in hard currency and the rising cost of serving debt could crowd out other expenditure in a region that’s home to more than half of the world’s poor people.

    “The conditions are ripe for a much higher level of debt distress,” Sonja Gibbs, head of sustainable finance at the Institute of International Finance, said by phone. “Whatever triggers the next crisis, when it happens, you are likely to see a high degree of contagion risk because investors have been moving into higher yielding assets.”

    Still, the continent is far from a debt crisis, its biggest multilateral lender says.

    “Some individual countries are getting to higher levels in terms of debt-to-GDP ratios, that’s the concern,” African Development Bank President Akinwumi Adesina said in an interview. The debt-to-GDP ratio of Africa is still “well within acceptable limits,” he said.

    Costly Debt

    More reliance on commercial bonds has raised servicing costs, diverting funds that could be spent on new roads or schools. Nigeria, the continent’s top oil producer, spends about the same amount every year on repaying debt as it does on infrastructure.

    Countries such as South Africa, the continent’s most industrialized economy, are raising debt levels and this year had its biggest Eurobond issuance yet to help plug a widening budget deficit as economic growth slows and public-sector wages and bailouts for state companies sap resources.

    External debt payments now eat up on average about 13% of the revenue of African governments from 4.7% in 2010, according to data compiled by the U.K.-based Jubilee Debt Campaign.

    Overspending and crashing commodity prices in the 1990s led to a debt crisis that prompted multilateral lenders and rich nations to write off the obligations of dozens of African countries in 2005. This time around a debt pardon may not be that easy.

    The complex debt structure with opaque terms and mix of different creditors will make any potential restructuring agreement more difficult.

    “We’re concerned that debt relief might now become more complicated,” said Jan Friederich, a senior director at Fitch Ratings. “Nowadays there is a greater concern that governments, when they forgive any debts, might not actually help the African countries very much, but might primarily be bailing out the commercial creditors.”

  • We invested ¢1.5bn in GoG securities; exempt us from debt exchange programme – Insurance companies

    The Ghana Insurers Association is requesting an exemption for insurance companies from the domestic debt exchange scheme because 40% of their total assets for the third quarter of 2022 were invested in Government of Ghana Securities.

    “According to data from NIC, insurance firms invested approximately GH1.5 billion in deposits with regulated banks and money market mutual funds,” the group’s president, Seth Kobla Akwasi, told reporters during a press conference on Friday, December 9, 2022.

    “Considering the fact that these banks and fund management companies have also invested in government of Ghana securities, the debt exchange will further compound the investment base of the insurance industry, since 40% of our investments are directly exposed to government of Ghana securities an additional 10% exposure from the licensed banks and fund managers will further worsen our situation”, he said.

    He added: “In uncertain times like this, entities must protect their assets through insurance, which is a key risk management tool. Anything short of an exemption will have far-reaching consequences for the insurance industry and the important role they play in protecting assets and liabilities of this country. This will also discourage the citizenry from taking up life and annuity policies”.

    “In the absence of the foregoing, the insurance and reinsurance companies will be happy to cede all our claims to the financial stabilisation fund.”

    GIA is the latest in a long streak of unions and groups to kick against the government’s debt exchange programme.

    The Ghana Securities Industry Association (GSIA) recently said it cannot accept the programme announced by Finance Minister Ken Ofori-Atta in the 2023 budget.

    In a statement issued on Wednesday, 7 December 2022, GSIA said: “We, at the GSIA understand the difficult crossroads at which our nation currently finds itself and the difficult choices that need to be made to set us on the path to debt sustainability. However, we are unable to accept the bond exchange program announced by the Minister of Finance in its present form”.

    “It is our intention to engage the MoF on our concerns and reservations. We, therefore, urge the investing public to continue to have confidence in us as we pursue this process. In this vein, we entreat clients of our member firms to allow us to engage and then communicate the outcomes to enable them take the best decision on their investments.”

    GSIA was established to be the voice of the securities industry and to work in partnership with the regulator to ensure the protection of investors.

    It is made up of firms regulated under the Securities Industry Act 2016 (Act 929) as amended (Investment Dealers, Investment Advisors, Fund Managers, Registrars and Custodians) with associate membership provision for other financial institutions and the Ghana Stock Exchange.

    The association was incorporated as a company limited by guarantee on 11 December 2003.

    It is a non-profit membership organisation with self-regulatory functions, to maintain prudent business practices among members and to ensure investor protection.

    It was founded by 10 firms: Boulders Advisors Limited, Capital Alliance Limited, CDH Securities Limited, Databank Brokerage Limited, Databank Asset Management Services Limited, Gold Coast Securities Limited, HFC Investment Services Limited, NTHC Limited, SEM Capital Management Limited and Strategic African Securities Limited.

    Recently, Mr Ofori-Atta said Treasury Bills have been exempted from the government’s debt restructuring programme.

    Also, individual bondholders will not experience a haircut.

    The government is currently negotiating a programme with the International Monetary Fund for a $3-billion credit facility programme, thus, necessitating the debt restructuring exercise.

    “Under the programme, domestic bondholders will be asked to exchange their instruments for new ones”, Mr Ofori-Atta announced Sunday evening (4 December 2022), adding: “Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037”.

    Also, “the annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Coupon payments will be semi-annual”.

  • ‘Debt-ridden Ghana’s cedi posts world’s biggest gain against US dollar’

    This week, Ghana’s currency outperformed other currencies in relation to the dollar, fueling hopes that the indebted nation would soon be able to access a rescue from the International Monetary Fund.

    “The currency was the lowest in Africa last week, more than 30% undervalued compared to its 25-year history, so some return after the enormous decline recently isn’t that surprising,” said Charles Robertson, the global chief economist at Renaissance Capital Ltd. in London.
    Additionally, the IMF is here, which ought to make dollar support possible.

    The gains came even as the African nation put its local-currency sovereign bonds in what Fitch Ratings described as a “default-like process,” and the holders of its dollar bonds braced for capital losses. The restructuring is needed to put Ghana’s debt on a sustainable path and secure a $3 billion IMF loan.

    Investors are returning to some of the riskiest corners of emerging markets amid the dollar’s biggest quarterly decline since 2010. They’re betting that a Federal Reserve pivot to a less-hawkish monetary stance will continue to weigh on the greenback in the coming months.

    The cedi advanced Friday to 12.9648 per dollar, the strongest level since October on a closing basis. It’s still down 52% this year.

    Optimism on the cedi “is a combination of a somewhat more hawkish central bank, some progress on the restructuring front, and a bit of buying the news,” said Simon Quijano-Evans, the chief economist at Gemcorp Capital Management Ltd. in London.

    Other emerging currencies that outperformed this week include the Vietnamese dong, Chilean peso, Costa Rican colon, and Chinese yuan.

  • How international media reported Ghana’s debt crisis, debt exchange programme

    Since the country’s debt has been steadily increasing due to inflationary pressures and a depreciation of the cedi, Ghana’s debt dilemma has received significant attention in the international media.

    Despite the government’s repeated promises to domestic bondholders and the investor community that a debt restructuring was unlikely, it was ultimately necessary to maintain debt sustainability.

    The Ghanaian finance minister confirmed that the country’s debt to GDP ratio has surpassed 100%.
    He declared that Ghana’s government is extending an invitation to domestic bondholders to exchange existing obligations for new ones with new maturities.

    International media reported the country’s situation with emphasis on what the next move for Ghana and other African countries will be.

    Reuters on December 9 said: “Ghana has begun restructuring its debt by rolling out a plan to swap $10.5 billion in local bonds with new ones, seeking IMF help and by preparing a proposal to restructure its foreign debt as the West African country struggles with its worst economic crisis in a generation.”

    It also highlighted how “big” Ghana’s debt levels were and how the country plans on restructructuring to be able to obtain financial support from the International Monetary Fund.

    The international news portal used an image from the #FixThecountry demonstration where Ghanaians hit the streets to demand for better living conditions.

    Bloomberg said “Ghana asked local bondholders to accept losses on interest payments as it restructures its debt to qualify for a loan from the International Monetary Fund.

    The West African country will replace existing local-currency debt with four new bonds maturing in 2027, 2029, 2032, and 2037, Finance Minister Ken Ofori-Atta said.”

    Africanews in its headline said, “Ghana to swap local debt in fight to regain economic stability.”

    It went further to say that “Ghana asked investors to exchange around $9 billion in domestic debt for new bonds on Monday (Dec.5) to ease a crunch in payments as the government negotiates an IMF bailout during its worst economic crisis in decades.

    Bloomberg highlighted the country’s deteriorating debt position.

    It said: “Ghana has the world’s worst-performing currency, inflation at 40% and its debt is junk. As it struggles to get to grips with a rapidly deteriorating situation, it’s now asking bondholders to accept losses on their investments.

    “The government aims to start talks with investors before the end of the month. It’s hired Lazard Ltd., Global Sovereign Advisory, and Hogan Lovells US LLP as advisers, Reuters reported earlier this month. Some bondholders have tapped Rothschild & Co and Orrick, Herrington & Sutcliffe LLP as advisers, the Wall Street Journal reported,” the report stated.

  • IMF programme to improve Ghana’s fiscal position, re-instill investor confidence – Deloitte Ghana

    The government’s choice to work with the International Monetary Fund (IMF) has been characterized as one that will strengthen the nation’s budgetary situation and restore investor confidence.

    Ghana urgently needs to access the Fund due to the current economic difficulties, claims auditing and accountancy firm Deloitte Ghana.

    “Based on history, the fund may force government to boost income which may be in the form of new taxes, which is likely to worsen the misery of Ghanaians especially within this current economic situation,” the business stated in its evaluation of the 2023 Budget Statement and Economic Policy.

    “Some conditionalities may require government to implement expenditure cutting measures including halting new employment and ongoing and new capital projects in the public sector,” Deloitte Ghana added.

    It however pointed out that the possible IMF-supported programme is expected to increase Ghana’s foreign currency reserves as well as stabilise the value of the local currency and soaring inflation which government says is an imported one.

    Deloitte Ghana in its review also said an IMF programme will result in credibility and boost investor confidence.

    This, it added will ensure Ghana regains access to the international capital market under more favourable conditions in the medium to long term.

    Meanwhile, government is hoping to reach a Staff Level Agreement by the end of this year with the IMF to help restore macroeconomic stability, among others.

    Ghana is targeting to receive US$3 billion over three years under an Extended Credit Facility from the IMF.

  • Economic crisis: MPs should consider 10 – 15% pay cut – Kyei-Mensah-Bonsu

    Members of Parliament have been urged to take wage cuts into consideration in order to demonstrate their support for struggling Ghanaians.

    On Tuesday, December 6, 2022, Majority Leader Osei Kyei-Mensah-Bonsu made the suggestion during his closing remarks for the debate in Parliament on the 2023 Budget Statement and Economic Policy of Government.

    Times are difficult, but as representatives of the people, it would be wise to learn from the Executive branch of government, which has been suffering a 30% wage cut since early this year, according to the Leader, who is also the MP for Suame.

    “Mr. Speaker, perhaps as Members of Parliament, just as the Executive has done, maybe we could also, even though these are difficult period for all of us…

    “We could also utilize the opportunity and also show some example by sacrificing anything between 10 and 15% of our salaries to demonstrate to fellow Ghanaians that we are with them in these difficult moments,” he suggested.

    He also proposed that with the funds, Parliament could use the youth to build toilets at designated points monthly.

    He also proposed that government reviews flagship projects in order to get achieve greater value for money and also that salary adjustments be made in respect of State Owned Enterprises (SOEs) in order to realign their earnings to the Single Spine Salary structure.

    Ghana is currently facing economic headwinds with a domestic debt programme facing opposition from stakeholders – largely from institutional bondholders.

    Government is hoping to close a deal on debt restructuring at home in order to be able to access an International Monetary Fund (IMF) facility to support the failing economy.

    Minister of Finance Ken Ofori-Atta on December 6 announced that government was restructuring bonds held by institutional investors, putting them into four groups stretching 15 years. With interest also spread in four tranches in four years.

    The Domestic Debt Exchange programme as it is called has faced some stiff opposition from major professional groups and workers union in the country.

  • Countries continue to fall into debt bondage with IMF programmes – Alex Gladstein

    Alex Gladstein, the Chief Strategic Officer of the Human Rights Foundation, asserted that nations that recurrently turn to the International Monetary Fund (IMF) for financial assistance eventually become enslaved by debt.

    He claims that the Bretton Woods institution forces fundamental changes and policies upon African nations, like Ghana, who require assistance from it to sustain their faltering economies.

    He went on to say that these African nations experience hardship as a result of the IMF’s strict regulations and also pay back the loans with high interest.

    Speaking in an exclusive interview with GhanaWeb on the sidelines of the Bitcoin conference held in Accra on Wednesday, December 7, 2022, Mr Gladstein asserted that Ghana will export more of its gold, cotton, among other resources as part of its debt exchange programme with the International Monetary Fund.

    He said, “The way that the international financial system works is that rich countries deposits funds and the IMF and World bank are creditors to those institutions and poor countries borrow money. They borrow money for industrial projects, dams,… that all comes from the world bank and they also borrow large chunks of money to address the balance of payment issues so basically when they go broke or run out of money, they get a bailout from the IMF.”

    “Those two institutions give out enormous sums of money and we are talking between more than a trillion dollars that they have in terms of lending capacity…The problem is, this debt is not a gift so anyone that owns a credit card understands that when you borrow, you have to pay back more; you pay back the principal and interest,” Mr Gladstein pointed out.

    He continued that, “Ghana is about to get its 17th bailout from IMF. That means currency devaluation, shrinking bank credit, removal of state investment, education, healthcare…they want to do that so that the country produces more for the outside world.”

    Ghana is targeting an amount of $3 billion over a three-year period from the IMF once an agreement on a programme is reached.

    The new amount requested as a loan is double the government’s initial target of $1.5 billion.

    The IMF programme is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

    IMF team arrived in Ghana on December 1

    Some staff of International Monetary Fund (IMF) on December 1, 2022, arrived in Ghana to engage the Government of Ghana on its economic bailout programme.

    IMF team that arrived in Ghana was led by their Mission Chief for Ghana at the International Monetary Fund (IMF), Stéphane Roudet.

    Ahead of their visit to Ghana, Mr Roudet noted that the Bretton Woods institution has in the past months had productive discussions with the Government of Ghana and was looking for a more progressive one towards the reaching of an agreement on policies and reforms tabled before the IMF.

    He stressed that the IMF remains committed to help Ghana restore its macroeconomic stability for Ghanaians to heave a sigh of relief.

  • Why Bawumia was absent at presentation of 2023 budget – Kyei-Mensah-Bonsu explains

    Osei Kyei-Mensah-Bonsu, minister of parliamentary affairs, has provided an explanation for Vice President Mahamudu Bawumia‘s absence from the budget presentation for 2023.

    Every time the government budget and economic strategy are presented to Parliament, Bawumia always goes with the minister of finance.

    Without Bawumia present, Ken Ofori-Atta presented the budget for this year on November 24.
    Some NDC (National Democratic Congress) members began to speculate that Bawumia didn’t want to be identified with the document as a result of his absence.

    Kyei-Mensah-Bonsu explaining the absence on December 6, 2022 during his final address on the budget debate explained that by law, the president causes to be prepared and laid before parliament the budget with a month to end of year.

    “The president causes the budget to be prepared, he doesn’t do the preparation himself and again, the president causes it to be laid in the House, he doesn’t do it himself,” he submitted.

    On Bawumia’s absence, he explained that the Vice President was as at November 24 acting as the president because Nana Addo Dankwa Akufo-Addo was outside of the country and had duly transferred presidential powers.

    “Mr. Speaker, in the lead up to the presentation, the president was outside this country, the vice president had assumed the office of the president as the acting president and he couldn’t therefore have accompanied the Finance Minister to this chamber.”

    He then took a swipe at the Minority stating: “Mr. Speaker, this really is fundamental and I thought our colleagues will appreciate this. But as usual, they wouldn’t understand and they would inflict their own ignorance on Ghanaians.”

    After his address, the budget dubbed ‘Nkabom budget’ was passed by a voice vote whiles MPs continue to debate the nitty gritty as related to estimates for the various Ministries, Departments and Agencies.

    Appropriation is expected to be passed before the end of year as that would help government’s efforts at securing an International Monetary Fund support programme. The IMF conditionality has led to an increasingly unpopular domestic debt restructuring programme.

  • Debt operation: Investors’ US$100bn being risked for IMF’s US$3bn– Adongo projects

    Isaac Adongo, a member of parliament for Bolgatanga Central, argued that while necessary, the government is not adequately pursuing the present debt restructuring.

    He asserts that the US$3 billion in assistance Ghana is requesting from the International Monetary Fund (IMF) will be significantly outweighed by investor capital destroyed by the local debt restructuring program outlined by Minister of Finance Ken Ofori-Atta.

    “We cannot ruin more than US$100 billion of Ghanaian resources in the quest for US$3 billion from the IMF; that will not happen.
    And I want to issue a caution that the Bank of Ghana is not their friend, warning investors, banks, pension funds, and fund managers, he remarked on December 7 during a news conference in Parliament.

    He stressed that other regulatory bodies like the Securities and Exchange Commission (SEC), the National Pensions Regulatory Commission (NPRA) and the National Insurance Commission (NIC) were all in bed in with government to destroy shareholders’ resources.

    He stated further that the Minority in Parliament was urging stakeholders to rise up and seek to reclaim their positions and their investments.

    “We agree that Ghana needs restructuring but not an illegal, unilateral and arrogant misappropriation of people’s resources. This is the time to call on those activist investment lawyers, those vigilante lawyers to step up and claim their place in the fight to rescue this country,” he stressed.

    Ghana is currently facing economic headwinds with a domestic debt programme facing opposition from stakeholders – largely from institutional bondholders.

    Government is hoping to close a deal on debt restructuring at home in order to be able to access an International Monetary Fund, IMF, facility to support the failing economy.

  • Today in History: Debt restructuring: 94% of Tier 2 pension contributions may suffer losses

    According to reports, the government may lose GH3.7 billion of the GH3.9 billion in Tier 2 pension contributions if it chooses to restructure its debt.

    Restructuring of the debt will result in lower yields on Tier 2 pension payments, which will affect the maturities of the securities.

    Due to their minimal risk, government bonds have received the majority of the Tier 2 contributions.

    Reports have stated that GH¢3.7 billion of the GH¢3.9 billion Tier 2 pension contributions, representing about 94% held in government securities have the probability of being affected by a debt restructuring programme.

    Conversations on a possible debt restructuring programme have begun popping up as Ghana strives to ensure its debt is sustainable.

    This is because the country is seeking a financial bailout from the International Monetary Fund.

    However, a debt restructuring will affect the returns on investments when the yield-to-maturity period is extended or a ‘haircut’ policy is implemented.

    Debt restructuring simply means when a country or company reviews the terms and conditions of the payment of loans in order payment easier or more flexible.

    A ‘haircut’ policy in debt restructuring, on the other hand, refers to when interest rates on outstanding debts are reduced.

    From this narrative, in the case of Ghana, when debt restructuring happens, returns on Tier 2 pension contributions will reduce thereby affecting the maturities of the securities.

    The Tier 2 contributions have been largely invested in government bonds due to their low-risk factor.

    Meanwhile, a five-member committee has been constituted by the government to lead discussions with financial sector players on Ghana’s debt management.

    The Finance Ministry noted that: “The Committee will be consultative and will among other things lead discussions with the financial services industry and other stakeholders to provide industry-wide inputs and transmit industry concerns on debt management strategy to the MoF and BoG.”

    “The stability of the domestic financial ecosystem is critical to a successful IMF-supported economic programme. The Government will take all necessary steps to protect the sector as we have done in the past,” the statement said on October 11, 2022.

  • External causes are behind the current economic difficulties – deputy finance minister

    Dr. John Kumah, deputy minister of minister, has insisted that external forces are mostly to blame for the nation’s current economic difficulties.

    He claims that the aforementioned external causes have had an effect on the country’s debt situation and have forced the government to implement a debt restructuring scheme.

    The deputy finance minister claimed in an interview with Citi TV in Accra that the outbreak of the Coronavirus pandemic and the Russia-Ukraine war in the previous two years were to blame for the worsening of Ghana’s financial condition.

    “We got here through very difficult global circumstances. The economy was doing well before COVID-19 struck and when Covid came, it did not only hit Ghana, it hit the entire world and there were disruptions in supply chains, the introduction of lockdowns, and things generally became expensive, and even now that we are out of the pandemic, one of the symptoms of COVID-19 in every country is high inflation rates. In Ghana, for example, we have seen how inflation levels have shot up from 12 percent to 40.4 percent in October,” he is quoted by Citinewsroom.com

    “Unfortunately, we were further hit in 2022 by the needless war in Russia and Ukraine which affected energy and that has led to increases in the prices of fuel at the pumps. The ‘trotro’ driver has to pay more and translated that into increases in fares for passengers and for everyone,” the deputy finance minister added.

    Touching on the proposed debt exchange programme, Dr. John Kumah said the decision was arrived at as part of requirements with the International Monetary Fund to access an economic support programme.

    “Any objective observer will tell you that, globally, we are heading toward a recession and that means further difficult situations for everyone, so we have to do something and that is why Ghana is making processes to get a program with the International Monetary Fund (IMF) and one of the conditions to meet the Fund’s program is debt sustainability.”

  • Investors may die of shock over Ofori-Atta’s debt exchange program – Economist

    According to economist Menson Torkunoo, local bondholders who will be hit hardest by the government’s domestic debt swap program may pass out from shock as a result of the size of the losses on their investments.

    As part of negotiations with the International Monetary Fund, the government has disclosed the specifics of a domestic debt exchange that will take place after the Debt Sustainability Analysis is finished (IMF).

    Finance Minister Ken Ofori-Atta announced on television on Sunday that domestic bondholders must replace their current instruments for new ones in accordance with the scheme.

    According to him, existing domestic bonds as of 1st December 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032, and 2037.

    Commenting on the announcement, the economist told Starr News that the government has lied to Ghanaians on the purpose of the E.S.L.A and Daakye bonds.

    “We don’t have an honest government. This is very sad. I tell you honestly people are going to die as a result of this announcement. I am telling you the facts. Because this is the same way this same government spent about 25 billion Ghana cedis to wipe away or to rationalize between seven to nine billion they have alleged to have caused by banks,” he stated.

    Mr. Tukornu underscored the situation where the nation’s economy is heading to ground zero has never happened in the history of the country.

    The economist added that he cannot fathom the dire situation could warrant “bonds holders, especially domestic ones, to sacrifice their hard-earned investment to enable the government to recover. It has never happened before. In my few years as a Ghanaian who has a little bit of the economy. I am really sad.”

  • IMF fingerprints all over 2023 budget, debt exchange programme – John Kwakye

    Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has averred that government’s announcement of a debt exchange programme was influenced by the International Monetary Fund (IMF).

    He further asserted that the 2023 budget statement presented by the Finance Minister, Ken Ofori-Atta was also geared towards securing a financial bailout from the IMF.

    Dr Kwakye in a tweet said, “IMF’s fingerprints are all over the 2023 Budget and the debt exchange presented by the Minister.”

    The finance minister, at a press conference in Accra on Monday, December 5, 2022, said under the debt exchange programme all domestic bondholders will exchange their instruments for new ones.

    Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.

    The annual coupons on all of these bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity.

    Meanwhile, Ghana is targeting an amount of $3 billion over a three-year period from the IMF once an agreement on a programme is reached.

    The new amount requested as a loan is double the government’s initial target of $1.5 billion.

    The IMF programme is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

    IMF’s fingerprints are all over the 2023 Budget and the debt exchange presented by the Minister.

    — J. K. Kwakye (@JohnKwabenaKwa1) December 4, 2022

  • Government targets GH¢137 billion from domestic bond holders in debt exchange programme

    The Finance Minister, Ken Ofori-Atta, has announced that the government is targeting GH¢137 billion in a debt restructuring program.

    The government has stated that due to Ghana’s high debts it has become imperative for them to swap some bonds for new ones in the short, medium, and long term.

    At a press conference to announce the beginning of the program on December 5, 2022, he said: “As I announced in the evening of yesterday, Sunday, 4th December 2022, we are gathered here today to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”

    The finance minister also acknowledged that Ghana’s debt has reached unsustainable levels and has exceeded the country’s GDP. Therefore, a debt exchange program is a step to restore the economy back to sustainable levels.

    “This is why we are today announcing the debt exchange which will help in restoring our capacity to service debt,” he added.

    He further associated the country’s problems with the global economic crisis that countries are currently facing.

    “The reasons are quite clear. The covid-19 pandemic, rising global food prices, rising crude oil & energy prices; and the Russia-Ukraine war adversely affected Ghana’s macroeconomy, with spillovers to the financial sector. The combination of adverse external shocks has exposed Ghana to a surge in inflation, a large exchange rate depreciation, and stress on the financing of the budget, which taken together have put our public debt on an unsustainable path,” he said.

    Ghana is currently in talks with the International Monetary Fund for financial support.

    Source: Ghanaweb

  • Ghana to swap Cedi debt for new bonds in restructuring

    As Ghana restructures its debt in order to be eligible for a loan from the International Monetary Fund, it is requesting that local bondholders endure interest payment losses.

    According to West African nation’s finance minister Ken Ofori-Atta, four new bonds with maturities of 2027, 2029, 2032, and 2037 will replace the nation’s current local currency debt.

    In the video that was broadcast late Sunday on the Ministry of Information’s page, he stated that the yearly coupon on all of the new bonds will be set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity.
    Semi-annual coupon payments will be made.

    “There will be no haircut on the principals of bonds,” he said on the local-debt restructuring. “External debt restructuring parameters will be presented in due course,” Ofori-Atta said.

    Ghana is negotiating a $3 billion program with the IMF after being shut out of international debt markets amid a selloff of its dollar bonds that lifted yields to distressed levels. The cedi is the world’s worst-performing currency against the dollar this year, raising the cost of servicing loans.

    While the world’s second-biggest cocoa producer has no dollar debt maturing until July 2023, it faces 43.5 billion cedis ($3.1 billion) in domestically-sold local-currency bonds maturing through the end of June, according to data compiled by Bloomberg. On top of that, it has $663 million coupon payments on dollar debt.

    Ghanaian lenders will be the most impacted by the government’s move, as they held 32% of outstanding government bonds at the end of August, the biggest chunk among investor groups, according to data from the Central Securities Depository Ghana Ltd.

    The Bank of Ghana and other financial regulators will ensure that impact is “minimized,” Ofori-Atta said. He said that the government is also putting together a financial stability fund with development partners to provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes.

    Treasury bills will be excluded from the local-debt restructuring to protect small investors and individuals, according to Ofori-Atta.

    Ken Ofori-Atta outlines Domestic Debt Exchange programme

  • Ofori-Atta’s address on Ghana’s Domestic Debt Exchange

    On Sunday, December 4, 2022, Ken Ofori-Atta, the minister of finance, unveiled a variety of initiatives for the government’s Domestic Debt Exchange (DDE) program.

    In a 4-minute speech, he claimed that the declaration was consistent with the government’s Debt Sustainability Analysis, which was included in the 2023 budget he had earlier on November 24 presented to Parliament.

    Among other things, the Minister outlined the replacement of four domestic bonds with existing ones, along with details on their maturities and coupon payment schedules.

    He also discussed steps to lessen the impact of local bond exchange on various stakeholders as well as the government’s overarching objective in relation to its interactions with the International Monetary Fund.

    In the Budget Statement presented to Parliament on November 24th, I announced that government will undertake a debt operation programme.

    The broad contours of the Debt Sustainability Analysis has been concluded and I am here this evening to provide some details on Ghana’s Domestic Debt Exchange which will be launched tomorrow. External debt restructuring parameters will be presented in due course.

    Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December, 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

    The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Coupon payments will be semi-annual.

    Our commitment to Ghanaians and the investor community, in line with negotiations with the IMF, is to restore macroeconomic stability in the shortest possible time and enable investors to realize the benefits of this Debt Exchange.

    The Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds, particularly small investors, individuals, and other vulnerable groups.

    In line with this:

    • Treasury Bills are completely exempted and all holders will be paid the full value of their investments on maturity.

    • There will be NO haircut on the principal of bonds.

    • Individual holders of bonds will not be affected.

    The Government recognizes that our financial institutions hold a substantial proportion of these bonds. As such, the potential impact of this exchange on
    the financial sector has been assessed by their respective regulators.

    Working together, these regulators have put in place appropriate measures and safeguards to minimize the potential impact on the financial sector and
    to ensure that financial stability is preserved.

    Specifically:

    – The Bank of Ghana, the Securities & Exchange Commission, the National Insurance Commission, and the National Pensions Regulatory Authority will ensure that the impact of the debt operation on your financial institution is minimized, using all regulatory tools available to them.

    – A Financial Stability Fund (FSF) is being established by Government with the help of development partners to provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they are able to meet their obligations to their clients as they fall due.

    These are difficult times and we count on the support of all Ghanaians and the investor community to make the exercise successful.

    We are confident that these measures will contribute to restoring macroeconomic stability. With your understanding and support and that of the entire investor community, we shall overcome our current difficulties, and with the help of God, put our economy back on the path of renewed and robust growth.

    As 1st Samuel 30:19 says, nothing was missing, small or great. I say to you, nothing will be lost, nothing will be missing, and nothing will be broken. We will, together, recover all.

    Thank you and God bless our homeland Ghana.

  • Why Ghana needs to look for ‘vulture’ investors after downgrades – Analyst explains

    The recent downgrades of Ghana’s creditworthiness are a significant blow to the country’s economic prospects, but Professor Williams Peprah, a financial analyst and associate professor of finance at Andrews University, has said that not all hope is gone just yet.

    He claims that the country can take advantage of the turn of circumstances in order to prevent more losses.

    He urged the financial managers of the economy to keep an eye out for vulture investors, or those who are drawn to high-risk bonds.

    “Let me give you some positive signals of the ratings. We have been talking that it’s going to affect Ghana but there are some positive signals. There are some investors we call; vulture investors, who are interested in distressed bonds.

    “So, if I were the finance minister by now, I will be coming to the US to look out for Vulture investors. They will be prepared to give money to the Ghana government and wait for a long period. When they do that, the returns are abnormal. They are not afraid of risk,” Prof. Peprah was quoted by myjoyonline.com.

    He also urged the finance minister [Ken Ofori-Atta] to actively search for these types of investors as the country awaits support from the International Monetary Fund.

    “That is probably what I was expecting the finance minister to be traveling around and talking to people. He did that in the first year when he came into government. The Templeton fund that came in, Templeton is a vulture investor.

    “The first 3 billion he gave, he profited 20% and we have paid for three years. So, he may have to go and look for vultures who can give us money for a longer period alongside what IMF is giving to us.”

    Rating agency Moody’s downgraded Ghana’s long-term issuer ratings to Ca from Caa2 or further junk status. Moody’s said this was due to Ghana’s high debt unsustainability and the proposed debt restructuring programme announced by the finance minister in the 2023 budget.

    “The Ca rating reflects Moody’s expectation that private creditors will likely incur substantial losses in the restructuring of both local and foreign currencies debts planned by the government as part of its 2023 budget proposed to Parliament on 24 November 2022.

    “Given Ghana’s high government debt burden and the debt structure, it is likely there will be substantial losses on both categories of debt in order for the government to meaningfully improve debt sustainability,” a statement on its website said.

  • ‘The hardship is real’ for ordinary Ghanaians – Mahama rallies support for government

    John Dramani Mahama has bemoaned the difficulties faced by typical Ghanaians as a result of the country’s economic crisis.

    Thus, the former president has urged all concerned parties to work together to help the government find a solution to the situation.

    He is confident that Ghana wouldn’t be in its current economic predicament if the president had access to the kind of sound advice that he used to receive.

    At a discussion with some clergy at his Cantonments office, Mahama declared that there was no use in taking political advantage of the difficulties the administration was experiencing.

    “All the political parties are in competition for leadership and so you cannot be happy that one party’s administration is going through economic difficulty and you stand and gloat over it.

    “I mean we must contribute what we can to ensure that they turn it around…. Better to work together to turn things around. Especially for the ordinary people of this country, the hardship is real and when you go to the grassroots you find that people really have a difficulty,” he stressed.

    An economy in distress

    The economy is facing major headwinds that have been characterized by galloping inflation, consistent depreciation of the cedi and general high cost of living and of doing business.

    The government is hoping to reach a deal with the International Monetary Fund, IMF, for an economic support programme aimed at shoring up the economy and easing the burden on ordinary Ghanaians.

    President Akufo-Addo and his government have come under heavy scrutiny for failing to address the current economic challenges in the country.

    The prices of goods and services have been continuously rising all year round, with inflation currently at over 40 per cent.

    The Ghana cedi has been ranked the worst currency in the world among 148 currencies tracked by Bloomberg, overtaking Sri Lanka’s rupee, having depreciated by nearly 50 per cent so far in 2022.

  • Financial bailout: IMF team arrives in Ghana on December 1

    On December 1, 2022, representatives of the International Monetary Fund (IMF) will be in Ghana to consult with the government on their economic rescue plan.

    Stéphane Roudet, the IMF’s Mission Chief for Ghana, will be in charge of the team that will be in Ghana from December 1 to December 13, 2022.

    Prior to their trip to Ghana, Mr. Roudet pointed out that the Bretton Woods organization had constructive meetings with the Ghanaian government in recent months and was hoping for a more forward-thinking one to reach an understanding on the policies and changes put forth to the IMF.

    He stressed that the IMF remains committed to help Ghana restore its macroeconomic stability for Ghanaians to heave a sigh of relief.

    “We have had productive discussions with the Ghanaian authorities over the last few months and look forward to our engagement in Accra…our objective for this visit is to make further progress toward reaching agreement on policies and reforms that could be supported by an IMF lending arrangement,” he said.

    “The IMF remains fully committed to help Ghana restore macroeconomic stability, bring relief to Ghanaians in this time of crisis, and lay the foundation for more inclusive growth,” he added.

    Ghana is targeting an amount of $3 billion over a three-year period from the IMF once an agreement on a programme is reached.

    The new amount requested as a loan is double the government’s initial target of $1.5 billion.

    The possible IMF programme for Ghana is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

  • Multi-stakeholder approach key to implementation of measures in 2023 budget – KPMG

    KPMG, an accounting and auditing organization, is in favor of a thorough consultation process with stakeholders, companies, and individuals to guarantee that the budgetary measures for 2023 can be carried out effectively.

    Andy Akoto, the company’s head of advisory and markets, feels that in order to implement the economic recovery measures outlined in the budget read by the finance minister on November 24, 2022, there needs to be steadfast support from multiple stakeholders.

    Addressing journalists at a seminar held on KPMG’s 2023 Budget Highlights, Andy Akoto outlined that the rising levels of debt, domestic revenue generation efforts, and credit rating downgrades are major aspects that remain key for government to address.

    “With the current theme of the 2023 budget, it is important for government to take a unified approach to reach out to all other economic participants irrespective of their standing in order to get the country out of its current economic challenges,” Andy Akoto said.

    “The growth targets for the 2023 budget are modest, with inflation and fiscal deficit remaining high, it has therefore become important that all hands must be on deck in order to shore up our revenues, minimize expenditures and remain innovative to expand our production base to grow revenues,” he added.

    Touching on government’s ongoing negotiations with the IMF, Andy Akoto said it is imperative for confidence and a sense of normalcy to be restored in the economy and among investors.

    “In as much we are hoping for a deal to be reached, I agree that government can begin to put in place some options to ensure it adopts a more robust and sustainable stance to commit to the things the nation ought to undertake and government must lead the way,” he noted.

    Ghana is hoping to secure $3 billion from the International Monetary Fund under an Extended Credit Facility. The deal when reached will help restore macroeconomic stability, among others.

  • We don’t know details of employment freeze in 2023 budget – TUC Secretary General

    According to Dr. Yaw Baah, the secretary general of the Trades Union Congress (TUC), his organization is unaware of the specifics of the government’s decision to halt public sector hiring as set down in the 2023 budget.

    He claims that the TUC is unsure if this is one of the requirements that the International Monetary Fund (IMF) has set for Ghana’s economic recovery program.

    Speaking on Accra-based TV3, Dr Yaw Baah explained, “we still don’t have the details of the IMF conditionality but you will not be wrong if you think this is part of IMF conditions. Since 1965 when Ghana Government started going to IMF, the employment freeze has always been part, of the last one that ended, employment freeze was one but in that case, it was net.

    “Net meant that if somebody retires you can replace the person. So, the net freeze is what we need. But this one, we don’t know the details, whether it is the net freeze or total freeze.

    “If it is a net freeze then it is like the previous one but if it is a total freeze, it is another ball game altogether. There are 644,000 people on the single spine. Let us assume without admitting that about 5 per cent of them retire yearly.

    “If only five percent retire every year, we are talking now about over 30,000 people retiring and if the 30,000 people retire and they don’t replace them it will affect service delivery. If you reduce numbers by over 30,000 and they have not been replaced then your effectiveness in service delivery will be affected.”

    The government of Ghana through the Minister of Finance, Ken Ofori-Atta, announced in the 2023 budget a freeze on employment into the civil and public service.

    According to him, the government will not set up new government agencies in 2023.

    The minister while presenting the 2023 budget in Parliament on Thursday, November 24, noted that as the first step toward expenditure rationalisation, the government has approved a number of directives which takes effect from January, 2023.

    These are “All Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs) and State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;

    “A ban on the use of V8s/V6s or its equivalent except for cross country travel. All government vehicles would be registered with GV green number plates from January 2023; Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;

    “Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members.”

    Ofori-Atta added “Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff; As far as possible, meetings and workshops should be done within the official environment or government facilities; Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year; Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;

    “A freeze on new tax waivers for foreign companies and review of tax exemptions for the free zone, mining, oil and gas companies; A hiring freeze for civil and public servants, No new government agencies shall be established in 2023; There shall be no hampers for 2022; There shall be no printing of diaries, notepads, calendars and other promotional, merchandise by MDAs, MMDAs and SOEs for 2024; All non-critical project must be suspended for 2023 Financial year.”

  • BoG will ensure banks remain solvent – Dr Addison

    Dr. Ernest Addison, the governor of the Bank of Ghana (BoG), has expressed worry about the solvency of some Ghanaian banks.

    According to him, the Central Bank will put in measures to ensure that banks remain solvent. This, he said is the most important task of the Central Bank.

    The decision by the BoG comes as the government prepares to restructure its debt to pave way for an International Monetary Fund (IMF) bailout. This will include haircuts to bondholders.

    Dr. Ernest Addison explained at a media briefing that: “The good thing is that we think that there are adequate buffers. Nevertheless, the Central Bank will put in measures that will ensure that the banks remain solvent.”

    On the subject of Ghana’s galloping inflation, the Governor said, “The inflation forecast shows that inflation will likely peak in the first quarter of 2023 and settle around 25% by the end of 2023. This forecast is conditioned on the continued maintenance of the tight monetary policy stance and the deployment of tools to contain excess liquidity in the economy.”

    He noted that there are some risks associated with inflation such as additional pressures from the proposed VAT increase in the exchange rate have to be monitored.

    Dr Addison added that “to continue to anchor inflation expectations, the committee, therefore, decided to increase the policy rate by 250 basis points to 27%.”

  • Finance Minister must be open with Ghanaians – Bagbin

    The Speaker of Parliament, Alban Bagbin, wants the government to be open and candid with Ghanaians as its negotiation with the International Monetary Fund nears completion.

    Mr. Bagbin said the government must bring all Ghanaians on board to find solutions to the challenges.

    Speaking to journalists in Ho in the Volta Region, Mr. Bagbin said the Finance Ministry must show openness in all its dealings.

    “The absence of openness and transparency can lead to suspicion and a profound sense of despair and hopelessness. It is in this regard that I call on the Minister of Finance to muster the courage to be candid, open and to speak truth to power,” he said.

    “Don’t come and repeat what we have been told already, We know it. Give us policy alternatives,” Mr. Bagbin added.

    Critics of the government have accused it of not being forthright about the country’s finances.

    The opposition National Democratic Congress, for example, accused the government of fiscal recklessness and creative accounting as Ghana’s economic crisis took shape.

    The government is currently seeking $3 billion from the International Monetary Fund to support the economy.

    The government sought the International Monetary Fund’s support months after being urged by the opposition to do so amid worsening inflation and forex challenges.

    Before going to the International Monetary Fund, the government had claimed it was on sound financial ground and did not need International Monetary Fund support.

  • Ghana’s public debt increased by GH₵93bn due to cedi depreciation – Ofori-Atta

    Ken Ofori-Atta, Minister of Finance, disclosed in the 2023 budget statement that Ghana’s public debt has increased by GH₵93 billion ($6.53 billion at the current rate) due to the depreciation of the Ghanaian cedi since the beginning of 2022.

    According to him, the said amount is twice more than the anticipated US$3 billion bailout Ghana is seeking from the International Monetary Fund (IMF).

    In the 2023 budget statement, he said the cedi has depreciated by 53.8% and 54.2% against the dollar as of October 2022 and November 2022.

    The depreciation is due to the fact that the country cannot access the International Capital Market due to the continuous credit rating downgrades. The tightening of domestic financing conditions and the increasing cost of borrowing has also contributed to further depreciation.

    Ofori-Atta added that there has been a high demand for forex to finance the import bill, including the import of crude, and the financing of electricity has worsened the performance of the cedi and led to the high depreciation.

    “Ghana’s import bill, the budget stated, exceeds US$10 billion annually. Considering the low foreign earnings, it has been difficult to meet the import requirements including crude oil and petroleum products of about US$400m (GH₵4.80 billion) a month. The Ministry of Finance also requires about US$1.0 billion per year to finance the lights in homes and workplaces,” he said.

    “For us at the Ministry of Finance, the depreciation of the cedi seriously affects our ability to effectively manage our debt. Indeed, our stock of debt has increased by GH¢93 billion this year alone due to the depreciation of the cedi at the beginning of 2022,” the Finance Minister added.

    Ghana is seeking a three-year Extended Credit Facility (ECF) programme of $3bn at the International Monetary Fund. This means that this potential bailout cannot even finance the debt accumulated as a result of the depreciation of the Ghanaian cedi.

     

  • Government must be transparent about Ghana’s debt – Tax Justice Coalition

    For efficient debt management and sustainability, the Tax Justice Coalition Ghana has urged the government to be open about the nation’s debt and its restructuring.

    The International Monetary Fund (IMFDebt )’s Sustainability Analysis, a key part of the Fund’s loan support programme, requires the government to furnish certain data, according to the Coalition.

    The Coalition made this request during a workshop with the title “Ghana’s Debt and Economic Crisis: Global and Domestic Challenges” that was conducted in Accra on Tuesday, November 24.

    Speaking at the event, Dr Vitus Adaboo Azeem, the Chairman of the Coalition, charged the Government to make available all data on Ghana’s debt including quasi-government-backed debt guarantees to fast-track Ghana’s negotiations with the International Monetary Fund (IMF).

    He said the Government must regularly publish all transactions of State Enterprises, including the Ghana National Petroleum Corporation (GNPC) and the Minerals Income Investment Fund (MIIF).

    The Coalition said government must ensure the commitment by the President, Nana Addo Dankwa Akufo-Addo to protect Cedi-denominated debts to protect domestic savings to avoid a total collapse of the economy.

    Dr Azeem said, “Government must immediately reduce the cost of government machinery, either by a further cut on the overall emoluments of the office of government machinery and reduce the number of non-essential staff.”

    He also advised that an intentional strategy to grow domestic private capital is a way of increasing local content was developed and implemented by the Government to help solve the current economic crisis the country is facing.

    Apart from this, he encouraged the Government to implement strategic measures to shore up revenue mobilisation effort through technology-based approaches such as automated tax filing and payment systems, efficient tax-related data management systems and improve tax compliance across all the tax handles.

    The Chairman also urged the Government to intensify efforts to curb the illicit financial flows as the nation continued to lose valuable revenues through such avenues.

    He said, “The Government must strengthen state accountability institutions such as the Office of the Special Prosecutor (OSP), CHRAJ, EOCO, Ghana Audit Service and Internal Audit Agency by adequately resourcing and guaranteeing their independence to ensure efficiency in public financial management and fight corruption more effectively.”

  • Economy to bounce back with Ofori-Atta’s admission of high-risk debt distress – Economist

    According to economist Bernard Oduro Takyi, Ghana’s economy would soon recover as a result of the finance minister’s acknowledgement of the country’s high-risk debt distress situation.

    On Friday, November 25, 2022, he made this forecast in an interview for the midday news on Accra 100.5 FM.

    This acknowledgment, according to the economist, will help Ghana quickly reach an agreement with the International Monetary Fund (IMF).

    Other investors will now be able to assess Ghana’s economy clearly and might be inclined to help it, he continued.

    He went ahead to commend the minister for being candid about the state of Ghana’s economy.

    He was quick to add that the posture of the minister in saying “we are a proud nation” has brought us where we are.

    “Nobody in his or her right state of mind will gloat if the country’s economy collapses,” he posited.

    “We won’t be here if the minister had earlier admitted his guilt of running the economy down,” he stressed.

    The finance minister last Thursday in parliament revealed that the ministry of finance has conducted a Debt Sustainability Analysis (DSA) based on Ghana’s macroeconomic outlook and analysed the country’s capacity to finance its policy objectives and service its debts.

    It covers public, publicly guaranteed debt of the central government and partial non-guaranteed debt of SOEs, Finance Minister Ken Ofori-Atta told parliament.

    He said: “The sustainability of our debt has been continuously affected by the negative impact of exchange rate depreciation, particularly on external debt, as well as the crystallisation of significant contingent liabilities in recent years.”

    The current debt sustainability analysis conducted, Mr Ofori-Atta noted, reveals that “Ghana is now considered to be in high risk of debt distress.”

    “Mr Speaker, despite the heightened debt levels, the government remains committed to ensuring that debt is brought to sustainable levels over the medium to long term,” he indicated.

    To this end, Mr Ofori-Atta announced: “We will implement a debt exchange programme to address the challenges identified in the portfolio in collaboration with all relevant stakeholders including the Ghanaian public, investor community and development partners.”

    Furthermore, he said the government will continue to strengthen its oversight of all SoEs, in particular, the financial and energy sectors.

  • Gov’t clarifies possible debt operations; says no conclusions have been reached

    Government says it is yet to conclude technical works on the country’s possible debt operations following engagements with the International Monetary Fund (IMF).

    The Ministry of Finance in a statement issued on Thursday, November 24, 2022, shortly after the presentation of the 2023 Budget by the sector minister emphasizes, “terms of principal payments and interest on the public debt are still being discussed”.

    This clarification comes on the heels of some media reports suggesting that government intends to put interest payments for domestic bondholders on hold and rather introduce some haircuts on international bonds.

    The widespread publications point to debt restructuring that will impose a 30 percent haircut on both the principal and interest of foreign bonds while individuals with local bonds will begin receiving interest in full from 2026 after receiving zero, five and 10 percent of interest in 2023, 2024 and 2025 respectively with the principal going untouched.

    But the statement from the Finance Ministry maintains that, no such arrangements have been finalized because discussions are still being held.

    “Details of the different layers of a debt operation, including the terms of principal payments and interest on the public debt are still being discussed, taking into account recipes of debt. Sustainability and International set practices”, the release read in parts.

    “All measures will be communicated by the Ministry of Finance in due course”, it further continued.

    Finance Minister, Ken Ofori-Atta during the presentation of government’s economic policy and budget statement for the next fiscal year beginning January 2023 told Parliament, government is considering a debt operation aimed at restoring the country’s debt sustainability and reducing pressures on the national budget.

    This he said would also open up financing streams and provide needed balance of payment support from the IMF.

    Currently, Ghana is at the doors of the International Monetary Fund institution seeking a US$ 3 billion bailout after a worsening economic situation and cost of living crisis.

    Government says it has reached agreed programme objectives with the Fund for the support.

    The move has raised issues of possible haircut on some investments as part of debt restructuring measures, despite assurances by President Akufo-Addo that government does not intend to slash the returns made on investments in its negotiations.

    “Government of Ghana reiterates its commitment to rolling out a lasting solution to the current economic challenges with the ultimate goal of restoring macroeconomic stability and anchoring debt analysis”, the Finance Ministry concluded in its statement.

     

  • 2023 Budget: Government to cut imports by 45% – Finance Minister

    According to Ken Ofori-Atta, Ghana’s Finance Minister, the government would focus on a few particular products for import replacement in 2023 with assistance from the business sector.

    On Thursday, November 24, 2022, the minister delivered the 2023 budget statement and economic strategy to parliament. He stated that the targeted goods make up roughly 45% of the country’s yearly imports, which puts pressure on the cedi.

    “Mr. Speaker, as I have already indicated, Ghana’s heavy dependence on imports places tremendous pressure on the Cedi, creating an unfavourable balance of payments position. On average, Ghana’s import bill exceeds US$10 billion annually and is accounted for by a diverse range of items that include iron, steel, aluminium, sugar, rice, fish, poultry, palm oil, cement, fertilizers, pharmaceuticals, Toilet roll, toothpick, fruit juices, etc. ,” he said.

    Mr Ofori-Atta said the government through partnerships with the private sector will ensure the establishment of various manufacturing plants to produce such products locally.

    “We currently have the capacity as a country to locally produce items that account for about 45 percent of the value of our annual imports. These include rice, fish, sugar, poultry, cement, pharmaceuticals, jute bags, computers, etc. To this end, Government will target these products for import substitution by supporting the private sector, through partnerships with existing and prospective businesses to expand, rehabilitate and establish manufacturing plants targeted at producing these selected items,” the minister said.

    With the country’s current economic challenges and ballooning debt rates, the 2023 budget policy is expected to help recalibrate Ghana’s economy.

    The government of Ghana is currently engaged with the International Monetary Fund (IMF) for an economic bailout.

  • 98 NPP MPs agree to support Ofori-Atta after Minority, NPP leadership meeting

    Prior to Ken Ofori-Atta, the beleaguered minister of finance, reading the 2023 Budget Statement on November 24, the Majority Caucus in Parliament has patched up all of its frontal rifts.

    On November 23, a meeting between parliamentarians and NPP leaders took place, during which a number of agreements were made.

    The Minister will be assisted in presenting the budget and seeing that it is appropriated, and he or she will be permitted to see out the current stage of negotiations with the International Monetary Fund, or IMF.

    The meeting comes on the back of a renewed call by some 98 NPP MPs who had threatened to boycott the budget presentation if Ofori-Atta appears to present it.

    A statement co-signed by Majority Chief Whip, Frank Annoh-Dompreh and NPP General Secretary Justin Kodua Frimpong read in part: “At a meeting this evening, the 22 of November 2022, involving the Majority Caucus, the Leadership of the Party and the Council of Elders, it has been agreed by all to refocus and recline to the earlier position requested by the President.”

    The three broad areas agreed on were as follows

    1. The demand be stood down until the conclusion of the round of negotiations with the International Monetary Fund (IMF) which would feed into the 2023 Budget;

    2. The presentation of the 2023 Budget Statement and Economic Policy on the 24th November 2022 by the Finance Minister on behalf of the President; and

    3. The subsequent presentation and passage of the Appropriation Bill

    “The meeting agreed that the President would act upon the initial request of the NPP Parliamentary Caucus after the conclusion of these matters,” the statement added.

     

  • Failure to pass 2023 budget could derail IMF negotiations – Gabby

    Private legal practitioner and a member of the governing New Patriotic Party (NPP), Gabby Asare Otchere-Darko says the current economic crisis could worsen should the 2023 Budget not be passed on time.

    According to Gabby the budget to be presented on Thursday, November 24, cannot suffer the fate of the previous one, referring to the 2022 Budget that saw a long debate and a protracted procedure.

    According to him, failure to pass the budget could derail the progress made with the International Monetary Fund (IMF) for a bailout.

    Thursday’s 2022 budget is crucial. It can’t suffer a fate similar to the 2022 budget and its revenue measures. It could completely derail negotiations with the Fund if not passed. Critical to this are its revenue generation measures. We plead the NDC joins NPP in this for Ghana.

    — Gabby Otchere-Darko (@GabbyDarko) November 23, 2022

    In a tweet on Wednesday, the founder of the Danquah Institute think tank pleaded with parliamentarians belonging to the opposition National Democratic Congress to help get the budget passed.

    The outspoken politician added that revenue generation measures in the proposed budget are critical to solving the economic quagmire the country faces currently.

    “Thursday’s 2023 budget is crucial. It can’t suffer a fate similar to the 2022 budget and its revenue measures.

    “It could completely derail negotiations with the Fund if not passed.

    “Critical to this are its revenue generation measures. We plead the NDC joins NPP in this for Ghana,” he tweeted.

    Embattled Finance Minister, Ken Ofori-Atta is expected to present the budget despite agitations within Majority MPs for him not to do so.
    The MPs have threatened to boycott the reading should he insist on presenting it, however, on Tuesday, November 22, the Council of Elders of the NPP and the national leadership of the party held a crunch meeting with the aggrieved MPs to reconsider their decision.

    Per JoyNews sources say the meeting was able to whip the non-conformist MPs in line, however it is unclear if the Minority who have filed a censure motion against the minister, will be present for the budget reading.

     

  • Ofori-Atta’s censure: We’ve been betrayed by NPP MPs – Haruna Iddrisu

    The Minority in Parliament has expressed disappointment at the Majority Caucus in failing to support the censure motion against the Finance Minister, Ken Ofori-Atta.

    The Minority filed a censure motion against the Finance Minister over allegations of conflict of interest, financial recklessness leading to the collapse of the Ghana Cedi and gross mismanagement of the economy among others.

    Some New Patriotic Party Members of Parliament also called on the President to dismiss the Finance Minister due to the current economic hardships. They had threatened to boycott the 2023 Budget presentation scheduled for Thursday, November 24.

    But national executives and the Council of Elders of the NPP on Tuesday stepped in to resolve the impasse between the NPP members of the Majority Caucus and the President over the demands for the sacking of the Finance Minister.

    A statement jointly signed by the Majority Chief Whip, Frank Annoh-Dompreh and the General Secretary of the NPP, Justin Koduah as a resolution to the ongoing impasse, urged the Majority MPs to put their demands on ice until negotiations for the International Monetary Fund (IMF) bail-out are completed.

    Addressing the media on Wednesday, the Minority Leader in Parliament, Haruna Iddrisu said the Majority caucus has failed the public by not supporting the censure.

    “President Akufo-Addo will go down in history as the President who mostly disrespected public appeal because as far as we are concerned public opinion is not supportive and favourable to the continuous stay in office of this failing, beleaguered lame-duck Finance Minister Ken Ofori Atta.”

    “We feel let down, and we feel betrayed by the Majority caucus, who have shown no wits in supporting us with our impeachment process…We are not abandoning our censorship motion, and we are in it for the long haul,” the Minority Leader told Journalists on Wednesday.

  • ‘That seems to be a weird question’ – Ofori-Atta on who will present 2023 budget

    The subject of whether the minister of finance expects to be the one to deliver the 2023 budget statement later this week has been characterized by Ken Ofori-Atta as “strange.”

    On November 18, he told media in Parliament that he anticipated to be the one to present the budget, highlighting the fact that he had not been formally informed of the opposition to that action by legislators from his own party.

    He had just finished testifying before the parliamentary ad hoc committee, which is now looking into a resolution of censure made by the Minority Caucus against him. The committee’s report will be delivered to the House today.

    Asked about the work of the committee, he responded: “I guess it is democracy in play and we just seek fairness and we are confident in how the process will evolve.”

    On whether or not he will deliver the budget, he said: “Yes, I expect so, that seems to be a weird question.”

    “I don’t know, I haven’t heard that officially but we will see,” was his response when asked about the group of 98 New patriotic Party MPs who were opposed to him presenting the budget.

    An economy in distress

    The economy is facing major headwinds that have been characterized by galloping inflation, consistent depreciation of the cedi and general high cost of living and of doing business.

    The government is hoping to reach a deal with the International Monetary Fund, IMF, for an economic support programme aimed at shoring up the economy and easing the burden on ordinary Ghanaians.

    President Akufo-Addo and his government have come under heavy scrutiny for failing to address the current economic challenges in the country.

    The prices of goods and services have been continuously rising all year round, with inflation currently at over 40 per cent.

    The Ghana cedi has been ranked the worst currency in the world among 148 currencies tracked by Bloomberg, overtaking Sri Lanka’s rupee, having depreciated by nearly 50 per cent so far in 2022.

  • Malawi gets $88.3M from IMF under ‘food shock’ loan window

    The Executive Board of the International Monetary Fund approved on Monday (Nov 21) a disbursement of US$88.327 million to Malawi under the Food Shock Window of the Rapid Credit Facility.

    The country became the first low-income nation to receive financing under this new mechanism.

    It provides, for a year, a channel for emergency Fund financing to member countries that have urgent balance of payment needs due to acute food insecurity, a sharp increase in their food import bill, or a shock to their cereal exports.

    Malawi is one of the 48 countries the IMF identified as worst affected by the global food crisis aggravated by the war in Ukraine.

    The news comes days after the IMF Executive Board approved a Staff-Monitored Program.

    This informal agreement with the IMF should enable the Malawian authorities to build a track record of policy implementation before it possibly implements an IMF-supported program.

    The deputy managing director and acting chair of the IMF executive board strongly invited the authorities to “to swiftly implement [its] debt restructuring strategy”, with the aim “to bring Malawi back to moderate risk of debt distress in the medium term.”

     

    Source: Africa News

  • FLASHBACK: Debt stock peaks at GH¢273 billion in September

    In September 2020, Ghana’s debt reached a record high of GH273.8 billion.

    This was brought on by the government’s excessive borrowing as well as other revenue deficits that required fundraising expenses.

    Ghana’s debt is currently around GH450 billion.

    In September of this year, as a result of increased borrowing to cover revenue gaps and support mounting expenses, Ghana’s indebtedness reached an all-time high.

    The public debt stock in Ghana was GH273.8 billion in September of this year, according to data from the Bank of Ghana (BoG), the highest level since the bank began disclosing information about the amount the country owes.

    The September this year stock was equivalent to 71 percent of total economic output, measured by gross domestic product (GDP), according to the data released by the central bank ahead of a press conference Monday.

    The debt stock was GH¢201.9 billion (59.8% of GDP) in September last year but rose by 35.6 percent to GH¢273.8 billion this September.

    It also showed that GH¢71.9 billion was added to the debt stock within the 12-month period.

    The data further showed that the share of the debt into external and domestic debt were almost at par, with the foreign component slightly above those procured locally.

    The foreign component was GH¢138.5 billion, equivalent to 35.9 percent of GDP while the domestic share was GH¢135.3 billion, representing 35.1 percent of GDP.

    Although a norm for countries, the weight of Ghana’s debt relative to its revenues has been worrisome, with the International Monetary Fund (IMF) and the World Bank Group consistently ranking the country as a high-risk debt distress country since 2015.

  • ‘We recognise the difficulties, but we will overcome’ – Bawumia

    Dr. Mahamamudu Bawumia, vice president, has emphasized that the administration is continuing its efforts to address the challenging times that have recently typified the Ghanaian economy.

    The commencement of the Russia-Ukraine conflict, along with other enduring economic problems, hit the nation hard while it was on the road to recovery from the COVID-19 pandemic’s devastation, which aggravated already-existing budgetary and socioeconomic woes.

    Among other things, the scenario has caused a dramatic currency depreciation, high inflation driving up living expenses amid a mounting debt stock, and forced the nation to request a rescue from the International Monetary Fund (IMF).

    But speaking at the 70th anniversary celebration of Our Lady of Mercy Catholic Church in Tema, the Vice President said: “We do recognise the difficulties and uncertainty we are experiencing in our country”.

    However, he added that with renewed strength and hope government is confident of turning things around.

    Dr. Bawumia recognised the phenomenal role that the Catholic Church has played in the growth and development of communities across the country.

    “Since its very inception in our country, the Catholic Church has been an educator; laying and building the foundation for many schools that provided sound education for millions of Ghanaians across the country.

    “In the health sector, the Catholic Church has been a pacesetter in providing quality, accessible, and affordable healthcare for many Ghanaians, especially those in our rural communities,” he said.

    He also added that the Catholic Bishops Conference has been an incredible check on the moral fibre of the country, constantly shining light on the path to growth and development.

    “Given these,” he said, “I solemnly welcome the church as a willing and able partner to government in development of the country.”

    With the Parish’s quest to construct a 4-storey multi-purpose building, a conference room, offices, meeting rooms, a skills-development centre and a library for the community, he committed to help make this a reality.

    “I also commit to helping realise plans of the church to have an endowment fund that provides skills and training for young people in this community,” he stated.

  • You’re a majority leader, not a majority messenger – Kyei-Mensah-Bonsu told

    Dr. Amoako Baah, a senior member of the New Patriotic Party (NPP), has chastised the Majority Leader, Osei Kyei-Mensah-Bonsu, for his handling of the call for the resignation of Finance Minister Ken Ofori-Atta by some members of his caucus.

    According to Dr. Baah, because the NPP MPs calling for Ofori-Atta’s removal form the Majority of the party’s parliamentary caucus, Kyei-Mensah-Bonsu should be the one leading the charge.

    Dr. Baah, a retired political science lecturer at the Kwame Nkrumah University of Science and Technology (KNSUT), added that the majority leader cannot stand in the middle and just inform President Nana Addo Dankwa Akufo-Addo of the demands of his members.

    “…I have been saying that Kyei-Mensah-Bonsu is not performing his duties as majority leader well. If you are a majority leader and your members are agitating about an issue, you must first engage them, and if what they are saying is true, you have to join them.

    “So that if you lead them to the president, you will be there as part of them, not just their speaker or messenger. That is why you’re called the majority leader and not the majority messenger.

    “You go to the president and you tell him that they said they don’t agree with you. Is this what you are supposed to do? Why are you their leader? Can’t they (the MPs) speak for themselves?” he said.

    Dr. Baah also claimed that President Nana Addo Dankwa Akufo-Addo lost it when the majority leader informed him of some NPP MPs’ demand that Ofori-Atta be relieved of his duties, questioning whether they were aware of the role Data Bank, the finance minister’s bank, played in financing his presidential campaign.

    Meanwhile, the number of NPP MPs calling for the sacking of Finance Minister Ken Ofori-Atta has increased to 98 from the initial 80.

    The 80 MPs had earlier made calls for the dismissal of Ken Ofori-Atta and the Minister of State for Finance, Charles Adu Boahen.

    The MPs later backed down following a meeting with President Nana Addo Dankwa Akufo-Addo, who asked that the minister be given time to conclude Ghana’s ongoing negotiations with the International Monetary Fund as well as the presentation of the 2023 budget in parliament.

    However, in an interview with Joy News, the 80 MPs’ spokesperson, Andy Appiah-Kubi, stated that the group is returning to their original demand for the finance minister’s removal.

    According to the Member of Parliament for Asante Akyem North, their renewed demand, with the support of 18 other members of their caucus, is because the minister’s position is now untenable.

    He added that the anti-Ofori-Atta MPs will boycott the budget presentation if he is allowed to come to parliament to present the budget.

  • IMF conditions: BoG to continue policy rate hiking cycle – Fitch Solutions predicts

    According to the research division of rating agency Fitch Solutions, the Bank of Ghana would keep raising the monetary policy rate.

    Fitch Solutions stated that the central bank is anticipated to raise the policy rate to 27 percent by the end of 2023 in a recent article on Ghana that was published on November 14, 2022.

    However, it thinks that the increase will push real rates upward.

    The paper stated: “We anticipate that this will push real rates into positive territory, promoting capital inflows and supporting the exchange rate, allowing the cedi to decline at a slower rate over 2023.”

    Touching on measures to address soaring inflationary pressures, Fitch Solutions said it expects Ghana’s central bank to further tighten its monetary policy as part of conditionalities of an imminent International Monetary Fund deal on the basis that Ghana secures a programme by the first quarter of 2023.

    “Given that we expect inflation to remain high, we expect that Ghana would have to tighten monetary policy as a condition of the IMF deal,” Fitch Solutions added.

    Since the start of this year, the BoG has hiked the monetary policy rate by about 10 percent to 24.5 percent in October 2022.

    Although the Bank of Ghana believes the hike is necessary to stem inflation, Fitch Solutions expects political risk to remain contained, reassuring foreign investors.

    “While we expect to see an uptick in protests against austerity measures that would likely be implemented under an IMF programme, we do not believe they will threaten the overall stability of the government. This is factored into our Short-Term Political Risk Index, in which Ghana scores 62.0 out of 100 (a higher score implies lower risk), above the Sub-Saharan African average of 50.3.”

    “In this scenario, we would not expect to see capital flight related to political instability, limiting downside risks to the exchange rate”, it added.

    Meanwhile, the Monetary Policy Committee of the Bank of Ghana are expected to begin its final and scheduled meeting for the year to review economic developments and make a determination of the next policy rate decision.

  • Economic crisis not due to mismanagement – Ofori-Atta

    Finance Minister Ken Ofori-Atta has outlined and demonstrated that the Akufo-Addo government made great strides and remarkable progress in the years before COVID-19 and the Russia-Ukraine war reversed the progress.

    He explained that at the onset of the pandemic and later the Russia-Ukraine war, the gains from over three years of fiscal rectitude were reversed because of efforts to protect lives and livelihoods.

    Addressing the Parliamentary Ad-hoc Committee on the censure motion against him, Ofori-Atta pointed out that the Akufo-Addo administration inherited a bad economy but improved all the indicators.

    According to him, “it is important to note that through our leadership and commitment to turning around the economy from its state in 2016, we made great strides and remarkable progress in the years before the pandemic, and the records attest to this.”

    He added that at the close of 2016, an assessment of the economy revealed a limited fiscal space with a fiscal deficit of 6.5%; a distressed financial sector recording a 17.3% non-performing loan ratio, a derailed IMF-ECF program, and reduced economic output (GDP growth-3.4%).

    Also, inflation was 15.4% at the end of 2016; the Monetary Policy rate (interest rate) was 25.5% at the end of December 2016; Limited capital expenditure to Ministries, Departments, and Agencies (MDAs), and ‘Dumsor’ which had decimated local industry and strongly impeded national productivity;

    Ofori-Atta said the government doubled economic growth in its first three years, and that Ghana’s growth in 2019 was touted as one of the highest globally.

    He stated that inflation came down significantly from 15.4% to 7.9% at the end of 2019 and remained in single digits till the pandemic hit in March 2020.

    “The fiscal deficit, which was about 6.5%, was brought down to under 5% by the end of 2019,” he said, adding that exchange rate depreciation was significantly reduced to under 5% in 2017 and averaged 8.7 percent between 2017 and 2019.

    He said the government reduced interest rates in line with declining inflation expectations, while the monetary policy rate declined from 25.5% at the end of December 2016 to 16% at the end of 2019.

    He also said that the average lending rate for the same period declined from 31.70% to 23.7%.

    The finance minister further noted that the government “directly spent GH¢25 billion to save the banking and SDI sectors, protecting the near collapse of the financial sector; saving close to 5,400 direct jobs and 12,000 indirect jobs, and ensuring that 4.6 million depositors were protected.”

    According to him, the government also implemented comprehensive reforms across the energy sector.

    He attributed Ghana’s successful completion and exit from the International Monetary Fund (IMF) Extended Credit Facility (ECF) bailout program in April 2019 to “good economic management” by his government.

    To ensure the irreversibility of the macroeconomic gains, he said the government has introduced a number of measures, including the passage of the Fiscal Responsibility Act, 2018 (Act 982) to cap the fiscal deficit at 5% of Gross Domestic Product (GDP) and ensure maintenance of a positive primary balance.

    Ofori-Atta pointed to the passage of the Public Financial Management Regulations, 2019 (LI 2378) to strengthen regulation of the Public Financial Management System, and the establishment of the two Social Partnership Programmes with Labour and Faith-Based Organisations, among others which shows strong momentum and optimism towards Ghana Beyond Aid agenda at the end of 2019.

    Source: Ghanaweb 

  • Removal of Ofori-Atta will not affect IMF negotiations – Fitch

    According to Fitch Solutions, continuing negotiations with the International Monetary Fund won’t be impacted by the potential dismissal of Ken Ofori-Atta as finance minister.

    This is because Mark Assibey-Yeboah, the next candidate predicted to succeed Ofori-Atta, “would take a more flexible attitude towards negotiations with the Fund,” claims Fitch.

    As a result, according to Fitch’s most recent article, “Division within Ghana’s Ruling Party to Weigh on Political Stability,” given the existing situation, a change in the finance minister will happen quickly and won’t cause any appreciable delays in negotiations with the IMF.

    It said “While Ofori-Atta remained opposed to an IMF bailout – we believe that he [Mark Assibey-Yeboah] would take a more accommodative approach towards negotiations with the Fund. As such, we believe that a change of finance minister would most likely not impact the timeline of IMF negations and we would retain our view that a staff-level agreement will be reached in Q123 [quarter 1, 2023].”

    The international research firm also projected an increase in protests and strikes due to the deteriorating living standards in the country.

    “Worsening living standards amid rising consumer prices – inflation reached 40.4% year-on-year in October 2022, the highest reading since 2001 – and tighter monetary conditions have led to a 72.7% quarter-on-quarter increase in protests and riots across in quarter 3 2022. The country has also seen large industrial action in recent months, including a three-day retail strike in Accra in October [2022],” it added.

  • Removal of Ofori-Atta will not affect IMF negotiations – Fitch

    Fitch Solutions has projected that in the possible event of the removal of the Finance Minister, Ken Ofori-Atta, ongoing negotiation with the International Monetary Fund will not be affected.

    According to Fitch, this is because the next person tipped to be Ofori-Atta’s replacement, Mark Assibey-Yeboah “would take a more accommodative approach towards negotiations with the Fund.”

    Therefore, in the latest article on “Division within Ghana’s Ruling Party to Weigh on Political Stability”, Fitch said with the current state of events a change of finance minister will happen quickly and would not result in significant delays in talks with the IMF.

    It said “While Ofori-Atta remained opposed to an IMF bailout – we believe that he [Mark Assibey-Yeboah] would take a more accommodative approach towards negotiations with the Fund. As such, we believe that a change of finance minister would most likely not impact the timeline of IMF negations and we would retain our view that a staff-level agreement will be reached in Q123 [quarter 1, 2023].”

    The international research firm also projected an increase in protests and strikes due to the deteriorating living standards in the country.

    “Worsening living standards amid rising consumer prices – inflation reached 40.4% year-on-year in October 2022, the highest reading since 2001 – and tighter monetary conditions have led to a 72.7% quarter-on-quarter increase in protests and riots across in quarter 3 2022. The country has also seen large industrial action in recent months, including a three-day retail strike in Accra in October [2022],” it added.

     

  • G20 Summit: Africa ‘just wants peace,’ not to take sides in the Ukraine conflict, says Paul Kagame

    Rwandan President Paul Kagame has lamented the effects of the Ukraine conflict on Africa, declaring that the continent desires world peace.

    On Tuesday, Kagame spoke at the G20 Summit in Bali, Indonesia, as chairperson of the African Union Development Agency’s (Nepad) Heads of State and Government Orientation Committee.

    The setting was ideal for Kagame to say: “I commend the attention given to the priorities that matter to small and developing countries, including coping with the effects of the war in Ukraine and other crises.” The conference was held under the theme “Recover Together, Recover Stronger.”

    Parts of Africa, particularly central and southern Africa, are currently experiencing or preparing for cropping seasons.

    But the war in Ukraine has resulted in a shortage of fertiliser, which is mostly procured in Ukraine and Russia. This has led to a spike in the price.

    One of the single most notable compromises to help alleviate this crisis this week was the release of a Russian fertiliser cargo which had been detained for months in the port of Rotterdam because of sanctions.

    It’s now on its way to Malawi, one of southern Africa’s most food-insecure countries.

    The 20 000 tons of fertiliser belong to a Russian who’s been on the United States sanctions list since the start of the war in Ukraine. However, he will not benefit from the cargo that’s now under the radar of the World Food Programme (WFP).

    Since the start of the war, a number of African countries have been sitting on the fence, choosing not to vote against Russia or outright support the invasion.

    It’s a diplomatic approach that seeks to please both sides of the divided world. But Kagame said Africa should not be blamed for allegedly taking sides.

    He said:

    What Africa wants to see is peace. We are confident that we cannot be accused of taking sides, simply by asking for peace. Africa is here for Africa and our productive relationship with the rest of the world.

     

    Kagame also highlighted that Africa had specific challenges, made worse by external factors such as the war in Ukraine, and that “too often our people are left to pay the price”.

    Climate change, the war in Ukraine, and conflicts in Africa are the major drivers of the widening gap between developing and developed countries. This has led to even more debt for the continent.

    Kagame pleaded with the G20 to reintroduce debt write-offs, and for more support from the International Monetary Fund through its Resilience and Sustainability Trust.

     

  • Economic Stability: Let’s think beyond IMF – Prof Aryeetey

    In order to stabilize and develop the economy, Ghana, according to Professor Ernest Aryeetey, a former vice chancellor of the University of Ghana, must look beyond the International Monetary Fund (IMF).

    He pointed out that Ghana had always been able to overcome economic difficulties with the help of the IMF, but for political reasons, the country had refused to implement the necessary reforms.

    At the 26th GJA Awards in Accra, which had as its topic, “Walking the path towards Ghana’s Economic Recovery – The Role of the Media,” Prof. Aryeetey made this statement.

    He said after economic recovery, there must be stabilisation and transformation, which required broad participation and the need to change agriculture, boost trade, stimulate investment and industrialise not to get back to the same situation.

    “Today, we are where we are because we failed to develop the right type of politics that will support economic transformation… (We need to) think about the political economy. How we (can) use our institutions to develop the right type of policies,” Prof. Aryeetey said, adding that the country needed to welcome more analysis and debates on the economy.

    Prof. Aryeetey asked the media to create space for discussions on the economy towards finding solutions to the challenges, saying without that, it would only be the ideas of a small political group, friends and families.

    “Let’s encourage debates on the economy. Let’s create a Ghana where ideas flourish and stop tagging people who share their thoughts on the economy..,” Prof. Aryeetey, who chaired the awards event said.

    Madam Florence Oboshie Sai-Coffie, Special Advisor to President Nana Addo Dankwa Akufo-Addo on Media and Strategic Communications, said government was doing its best to bring the economy back on track and tasked the media to amplify voices that could help find solutions to the economic challenges.

    She said the media would be prioritised in the search for the solution and said Government was happy journalists were responding positively to the call for all hands to be on deck for economic recovery.

    Mr Yaw Boadu Ayeboafo, Chairman of National Media Commission, asked the media to sustain national interest in discussions on the economy and not partisan ones.

  • Why use misreported data IMF rejected? – Egyapa Mercer to Minority

    The NPP MP for Sekondi Constituency in the Western Region, Andrew Kofi Egyapa Mercer, has said that the Minority in Parliament is rehashing old and debunked allegations against the Minister of Finance, Ken Ofori-Atta.

    Mr Mercer said the allegations of misreporting were first raised in May 2020, and rejected by the International Monetary Fund (IMF) as being untrue.

    He, therefore, wondered why the Minority would use the same issues as bases for a motion of censure against Mr Ofori-Atta.

    The MP made the statement at the first hearing of the Ad Hoc Committee on the motion of censure brought against the Finance Minister.

    Egyapa Mercer’s claim was also in response to Dr Cassiel Ato Forson’s presentation which was centred on the misreporting of the fiscal deficit, fiscal treatment of expenditures above or below the line and general public sector accounting.

    The MP said the past Country Representative of the IMF, Dr Albert Touna Mama, had debunked the allegations on Joy News File in May when he was called to respond to them when first raised by Dr Forson.

    “Indeed, the said Dr Touna Mama was the Country Representative of the IMF. He was called to respond to allegations on misreporting of figures that the Finance Ministry had presented to IMF and he said all the figures were known by the IMF and therefore it was untrue that there was misreporting,” Mr Mercer said.

    Meanwhile, in May 2020, Dr Touna Mama said that whilst his outfit tried “as much as possible to stay out of debates” they felt compelled to clarify statements made by Fact Check Ghana concerning the $1 billion IMF COVID-19 relief fund to the government.

    Fact Check Ghana, an affiliate of the Media Foundation for West Africa, through its website, stated that government of Ghana presented data to the IMF which was different from figures in the annual budgets for 2018 and 2019.

    But speaking on Joy FM’s News File Programme in May 2020, the IMF Country Representative to Ghana, Dr. Albert Touna Mama suggested that Fact Check Ghana misrepresented the facts because the government was not the one that presented the figures that the IMF published in its statements as Fact Check Ghana reported.

    The IMF Country Director explained that the difference in figures was as a result of a difference in the methodology of calculation, adding that the figure in fiscal deficit in their statement was a figure they generated themselves from the data government presented to them, having added financial and energy sector payments in line with their methodology, which is different from government’s methodology.

    Earlier, Mr Ofori-Atta, asked the committee for a fair hearing.

    He asked that he be furnished with the documents that they intended to rely upon, to execute the motion of censure initiated against him.

    The minister’s lawyer, Gabby Asare Otchere-Darko, said the rules of natural justice and fair hearing required that the accused was not only heard but also necessarily be furnished with the documents that formed the bases of the allegations made against him.

     

     

  • Economic Stability: Let’s think beyond IMF – Prof Aryeetey

    Professor Ernest Aryeetey, a former Vice Chancellor of University of Ghana, has said Ghana must think beyond the International Monetary Fund (IMF) in the quest to stabilise and transform the economy.

    He noted that Ghana had always known how to recover from economic hardship with the support of the IMF but had refused to follow the required reforms due to political expediency.

    Prof. Aryeetey said this at the 26th GJA Awards in Accra on the theme: “Walking the path towards Ghana’s Economic Recovery – The Role of the Media”.

    He said after economic recovery, there must be stabilisation and transformation, which required broad participation and the need to change agriculture, boost trade, stimulate investment and industrialise not to get back to the same situation.

    “Today, we are where we are because we failed to develop the right type of politics that will support economic transformation… (We need to) think about the political economy. How we (can) use our institutions to develop the right type of policies,” Prof. Aryeetey said, adding that the country needed to welcome more analysis and debates on the economy.

    Prof. Aryeetey asked the media to create space for discussions on the economy towards finding solutions to the challenges, saying without that, it would only be the ideas of a small political group, friends and families.

    “Let’s encourage debates on the economy. Let’s create a Ghana where ideas flourish and stop tagging people who share their thoughts on the economy..,” Prof. Aryeetey, who chaired the awards event said.

    Madam Florence Oboshie Sai-Coffie, Special Advisor to President Nana Addo Dankwa Akufo-Addo on Media and Strategic Communications, said government was doing its best to bring the economy back on track and tasked the media to amplify voices that could help find solutions to the economic challenges.

    She said the media would be prioritised in the search for the solution and said Government was happy journalists were responding positively to the call for all hands to be on deck for economic recovery.

    Mr Yaw Boadu Ayeboafo, Chairman of National Media Commission, asked the media to sustain national interest in discussions on the economy and not partisan ones.

     

  • Let’s think beyond IMF, says Prof Aryeetey

    Professor Ernest Aryeetey, a former vice-chancellor, of the University of Ghana, has said Ghana must think beyond the International Monetary Fund (IMF) in the quest to stabilise and transform the economy.

    He noted that Ghana had always known how to recover from economic hardship with the support of the IMF but had refused to follow the reguired reforms due to political expediency.

    Prof. Aryeetey said this at the 26th GJA Awards in Accra on the theme: “Walking the path towards Ghana’s Economic Recovery – The Role of the Media”.

    He said after economic recovery, there must be stabilisation and transformation, which required broad participation and the need to change agriculture, boost trade, stimulate investment and industrialise not to get back to the same situation.

    “Today, we are where we are because we failed to develop the right type of politics that will support economic transformation… (We need to) think about the political economy. How we (can) use our institutions to develop the right type of policies,” Prof. Aryeetey said, adding that the country needed to welcome more analysis and debates on the economy.

    Prof. Aryeetey asked the media to create space for discussions on the economy towards finding solutions to the challenges, saying without that, it would only be the ideas of a small political group, friends and families.

    “Let’s encourage debates on the economy. Let’s create a Ghana where ideas flourish and stop tagging people who share their thoughts on the economy..,” Prof. Aryeetey, who chaired the awards event said.

    Florence Oboshie Sai-Coffie, special advisor to President Nana Addo Dankwa Akufo-Addo on Media and Strategic Communications, said the government was doing its best to bring the economy back on track and tasked the media to amplify voices that could help find solutions to the economic challenges.

    She said the media would be prioritised in the search for the solution and said Government was happy journalists were responding positively to the call for all hands to be on deck for economic recovery.

    Yaw Boadu Ayeboafo, the chairman of the National Media Commission, asked the media to sustain national interest in discussions on the economy and not partisan ones.

    The United States ambassador to Ghana, Virginia E. Palmer, commended the media for its role in sustaining Ghana’s democracy and socio-economic development and stressed the importance of a free press and the safety of journalists.

    She said the embassy would continue to support the capacity building of journalists and commended GJA for the establishment of Journalists Support Fund.

    Kojo Oppong Nkrumah, Minister for Information, in a speech read on his behalf, said the Government attached great importance to the work of journalists and commended them for the interest in helping bring the economy back to life.

    He said the government remained committed to the safety of journalists and asked corporate Ghana to support the GJA Journalists Support Fund.

    Albert Kwabena Dwumfour, GJA president, said journalists had a great role to play in bringing the economy back to life and said a series of symposiums and lectures would be organised to help find solutions to challenges facing the country.

    He said the GJA had engaged some institutions towards the building of the capacity of journalists and called for the support of all.

    The GJA president also called for support for the Association’s Support Fund towards the welfare of journalists.

    Since 1957 Ghana has entered 17 bailout arrangements with the IMF to restore the health of government finances, having exited the last one in April 2019.

    The country is currently with the IMF seeking support to restructure the economy and bring it back on track.