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Tag: Ken Ofori-Atta

  • Ghana failed to meet target for GDP growth rate in 2019 Ofori-Atta reveals

    Ghana failed to meet its target for Gross Domestic Product (GDP) growth rate in 2019.

    This was revealed by Minister of Finance Ken Ofori-Atta when he delivered the 2020 mid-year budget statement in Parliament Thursday.

    Mr Ofori-Atta noted that the country recorded a growth rate of 6.5 per cent as against a target of 7.0 per cent.

    Nonetheless, this represented a 0.2 improvement from the 2018 figure of 6.3.

    This, Ofori-Atta argued, confirms that the economy has “continued with its robust performance since 2017.”

    Non-oil real GDP growth rate was 5.8 percent as against a projection of 5.9 percent

    End-period December inflation remained 7.9 percent with the target being 8.0 percent

    Overall Budget Balance, which was projected to end in a deficit equivalent to 4.5 percent of GDP, reached 4.8 percent

    Primary balance reached 0.8 percent as against a projected surplus equivalent to 1.1 percent of GDP

    Accumulated Gross International Reserves exceeded the projected 3.5 months of cover for imports of goods and services to reach 4 months.

    “Key drivers of this performance include the Information Communication Technology (ICT), which recorded the highest subsector growth rate of 46.5 percent, followed by Real Estate with growth rate of 19.9 percent,” the Minister said.

     

    Source: myjoyonline

  • GHC4.7bn spent to keep the lights on, pay inherited ‘questionable’ power contracts Ofori-Atta

    The Minister of Finance, Mr Ken Ofori-Atta, has revealed that a lot of investment has been made to ensure the lights are kept on for both domestic and commercial purposes.

    He told Parliament during the presentation of the mid-year budget review on Thursday, 23 July 2020 that the current government also paid the energy sector debts left by the Mahama administration as a result of some “questionable” power contracts which the previous government signed with some private power producers.

    He said: “We have enjoyed three-and-a-half years of reliable and cheaper power”, Mr Ofori-Atta said.

    “We have spent in excess of GHS4.7 billion on capacity payment to ensure that we keep the lights on and also to pay for power we do not use under various questionable contractual obligations we inherited”, he added.

    Mr Ofori-Atta further told Parliament that the current government has successfully digitised the economy, making it easier for businesses to be located within the country.

    This, he said, has also ensured modernity in the way of conducting business in the oil-producing West African nation

    “To modernise the economy in this global competitiveness, we embarked on a transformative agenda, digitising the economy. We implemented the digital addressing system and the national ID programme to ensure each Ghanaian and business location will be duly identified. All these have been made to formalise the economy,” he said.

    Source: Class FM

  • We have invested in about 100,000 jobless youth – Finance Minister

    The Minister of Finance, Ken Ofori Attah has said that the government has invested in about 100,000 unemployed youth under the Nation Builders Corps (NABCO) programme.

    According to him, the unemployed youths have been given jobs under the Akufo-Addo government with its various employment initiatives including planting for food and jobs.

    He said this while updating the public on the mid-year budget in Parliament today, July 23, 2020.

    More soon…

    Source: Atinka Online

  • Full text: Finance Minister, Ken Ofori-Attas Mid-year Budget Review

    Finance Minister Ken Ofori-Atta was in Parliament on Thursday, July 23 to present the Mid-year and Supplementary Budget Review.

    This was done in accordance with Section 28 of the Public Financial Management Act, 2016 (Act 921)

    Find the full presentation from the Finance Minister below

    Final 2020 Mid-year Fiscal Policy Review 23072020 Correct by The Independent Ghana on Scribd

  • Government to launch a GH¢100 billion development program – Ken Ofori-Atta

    Finance Minister Ken Ofori-Atta has revealed that government is set to launch a GH¢100 billion development program.

    Mr Ofori-Atta said this while delivering the 2020 mid-year budget review on the floor of parliament Thursday afternoon.

    He said the GH¢100 billion program is to revitalise the economy due to the impact of COVID-19.

    According to the Finance Minister, although the pandemic has affected the economy, the country will not be daunted by its effects.

    He said government will continue to do what it has to do to protect lives and livelihoods of Ghanaians and that government is up to the task.

    Source: Atinka Online

  • We did not conspire with BoG to collapse Ghanaian banks – Ofori-Atta

    The Minister of Finance, Ken Ofori-Atta says government did not to conspire with the Central bank, the Bank of Ghana (BoG), to collapse some indigenous Ghanaian banks that were affected in the financial sector clean-up exercise.

    According to him, government has no time and energy to collapse Ghanaian banks, urging the people who hold the view that the government conspired with the Central Bank to deliberately collapse some Ghanaian banks to speak the truth.

    He said as of the time the current government took over power from the then governing National Democratic Congress (NDC), all the collapsed banks “were totally insolvent” due to mismanagement which was happening in the financial sector.

    Mr Ofori-Atta, who was presenting the mid-year budget today [Thursday, July 23, 2020] at Parliament, said the government was only interested in fixing the broken economy they inherited.

    “As a serious government as we are, and as patriotic as we are, we absolutely have no time, no energy, to conspire with the central bank to deliberately collapse Ghanaian banks,” he said.

    He explained that as a result of mismanagement in the banking sector, funds of depositors have been locked up with no hope of such depositors accessing their funds.

    Mr Ofori-Atta said what the government did in the banking sector was a usual practice in the banking sector globally, and that the exercise was aimed at straightening the banking sector and boosting the confidence of customers.

     

    Source: Graphic.com.gh

  • Ghana spends GH¢6.40bn on interest payments in Q1

    The government of Ghana spent GH¢6.40bn on interest payments in the first quarter of 2020.

    This represented 1.7% of Gross Domestic Product (GDP) and in line with the envisioned target of GH¢6.42 billion.

    According to the Bank of Ghana, total interest payments constituted almost 64% of domestic revenue, undermining fiscal flexibility.

    While domestic interest payments outturn was close to the proposed target, external interest payments were somewhat above the planned target due to additional payments not factored in the programme targets, it said.

    Together with wages and salaries, they accounted for over 120% of domestic revenue, suggesting a lack of fiscal space and inherent rigidities in the budget execution.

    Wages and salaries amounted to GH¢6.50 billion (1.7% of GDP), above the envisioned target of GH¢5.94 billion (1.5% of GDP).

    The situation means that government depends on grants and other sources of funds to finance capital projects, raising concerns going forward.

    In 2020, the government is expected to spend GH¢23 billion on interest payments but that may not be so because of the coronavirus pandemic.

    Some multilateral institutions and sovereign nations that support the government budget may cut loan repayment schedule or cancel some debts owed them.

    Source: Class FM

  • Government received GH¢139m as dividends in 2018 – Report

    The government of Ghana received an amount of GH¢139.18 million as dividends in 2018 from institutions it has a stake in.

    This is, however, against a projected amount of GH¢275.50 million.

    According to the 2018 State ownership Report, the significant adverse variance of 49.48% was due to the non-payment of dividend by the Bank of Ghana, which was projected to pay an amount of GH¢200 million.

    State-Owned Enterprises contributed a total amount of GH¢8.52 million representing 6% of the total dividend received.

    The Ghana Ports and Harbours Authority (GPHA) and Ghana Reinsurance Limited paid a dividend of GHS3 million and GH¢5.5 million, respectively to the government.

    Joint Venture Companies (JVCs) and mining companies contributed GH¢18.58 million (13%) and GH¢112.07 million (81%), respectively.

    For JVCs, GCNET and GCB paid GHS8 million and GH¢5.6 million, respectively to government.

    For mining companies, Chirano paid GH¢61.8 million to government, whilst Goldfields Tarkwa mines paid GH¢43 million.

    According to the report, there was low compliance by entities to reporting and disclosure provisions in legislative and regulatory requirements governing their operations including Companies Act, 2019 (Act 992), Public Financial Management Act, 2016 (Act 921) and its associated Regulations (L.I. 2378).

    Source: Class FM

  • Parliament accuses Finance Minister of starving it of funds

    Parliament has accused Finance Minister Ken Ofori-Atta of starving the institution of funds for its activities.

    Consequently, some MPs are advocating a radical stance to compel the Finance Minister to make available funds for activities of the Legislature.

    According to the Leadership of Parliament, allocations to the House approved in the budget are constantly not released thus making the work of the institution near impossible.

    Speaking at a meeting between the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, and leadership of various Committees Chairman for the Local Government Committee and Assin Central MP Kennedy Agyapong charged the House to tie the release of funds from the Minister to the approval of his budget.

    Minority leader Haruna Iddrisu equally lamented the difficulty the house has had to grapple with as a result of the action of the Finance Minister.

     

    Source: Kasapa FM

  • Taskforce formed to facilitate recovery of industrial, manufacturing sectors Ofori-Atta

    Finance Minister, Ken Ofori-Atta has disclosed a taskforce has been established to further work on recovery, stabilization, and revitalization of industrial and manufacturing sectors to ensure a fast pace revamp post-Coronavirus.

    According to him, the taskforce will have a primary focus on specific large businesses to ensure a post-Coronavirus recovery of industry is well facilitated.

    Speaking at the launch of the Coronavirus Alleviation Programme (CAP) Business Support Scheme (CAP BuSS), Ken Ofori Atta said; “We have therefore proposed this [CAP BuSS] programme and additionally a taskforce has also been formed to further work on a recovery, a stabilization and a revitalization programme which will concentrate on industry and manufacturing with a specific focus on large businesses to spare growth, minimize job losses and to ensure that the post COVID-19 recovery is at an even faster pace and the President has charged us to do this”

    The Finance Minister adds government is positioning the newly set up Development Bank of Ghana to be a critical element of the post-recovery strategy for rapid industrialization and agricultural modernization.

    “This will turn Ghana also into a regional trade and investment hub,” he indicated.

    The CAP BuSS is an initiative intended to provide a stimulus package of GHS¢600 million in soft loans to scale up Medium Small-Scale Enterprises who may have been impacted by the Coronavirus pandemic.

    Source: www.ghanaweb.com

  • Government committed to making SMEs vibrant Ofori-Atta

    Minister of Finance, Ken Ofori-Atta, has indicated that the Akufo-Addo administration is committed to ensuring that Small and Medium Scale Enterprises (SMEs) remain vibrant in order to create jobs for Ghanaians during the period of the coronavirus pandemic.

    He said, this commitment is seen in the earmarked GH¢600million for SMEs to ensure they remain in business in spite of the impact of the COVID-19.

    He was speaking at the launch of the coronavirus alleviation programme business support scheme, at the seat of government, the Jubilee House in Accra on Tuesday May 19.

    He said the “government is committed to ensuring that SMEs remain vibrant and continue to create jobs for the people of Ghana during this period.”

    He added GH¢600million can go a long way in creating the Ghanaian enterprise.

    Robert Ahomka Lindsey, a Deputy Minister of Trade and Industry said the coronavirus alleviation programme is a key intervention to address the challenges facing Ghanaian businesses following the covid-19 pandemic.

    He said the programme will focus on the Pharmaceutical, manufacturing, tourism, water and sanitation, education including private, sectors.

    “The programme will be rolled out nationwide,” he said.

    Source: laudbusiness.com

  • You need to go through reports to understand economic figures – IMF Country Rep

    The Country Representative of the International Monetary Fund (IMF) to Ghana Dr. Albert Touna Mama has said that economic figures are generated from reports and that one needs to read full reports to understand different economic figures which have been presented.

    Speaking on Joy FM’s news analysis programme News File on Saturday to clarify allegations of falsification of figures to the IMF by the government, the IMF representative rejected the allegation, saying the government did not misreport figures to the IMF, but rather, the IMF generated its figures from data (report) the government presented to it.

    According to Fact Check Ghana and the opposition NDC, the government of Ghana had in its budgets to Parliament for 2018 and 2019 presented fiscal deficits of 3.0% and 4.4% of GDP but changed the figures to 7.0% and 7.5% of GDP to the IMF for 2018 and 2019 respectively.

    For Gross International Reserve, Fact Check Ghana and the NDC also alleged that government quoted 6,800 and 8,100 for 2018 and 2019 in its budget to Parliament but changed the figures to 5,317 and 6,634 for the same period respectively to the IMF.

    But the IMF Country representative noted that figures they published in their statements for fiscal deficit and gross international reserve were figures they generated themselves from reports they received from the government, which contained discussions and explanations on both sets of figures.

    He also expressed the belief that the budget statements presented to Ghanaians by the government similarly discusses and offers explanations on figures.

    “These statements (IMF’s figures) are at the back of a report,” said the IMF Country Rep.

    “When you go through these reports, all these discrepancies are discussed and I believe that the budget statements also goes into these discrepancies.”

    “So you cannot go through these reports and at the end of the report compare apple and peers. You need to go through the reports and understand what are the figures that have been presented.”

    While the IMF calculated its fiscal deficit without financial sector payments and energy sector payments, the government did so with the two payments. Similarly, the IMF calculated the gross international reserve without the heritage and stabilization fund, while the government’s method of calculating added the two.

    But Dr. Albert Touna Mama said nothing was hidden by the government and that it is aware of the reason for the government’s methodology as captured in the report they received and the budget statements.

    “When it comes to the data we received that we worked with, in this debate, there is nothing new that we did not know about.”

    Asked whether it is the IMF’s preference that the government must include financial sector payments and energy sector payments when preparing financial reports, the IMF country director said the IMF doesn’t necessarily need to have a preference.

    “We don’t need to have a preference,” he said.

    The IMF rep added that it is not necessarily wrong for the government not to include certain elements in determining certain indicators in some instances.

    He cited an example of an agreement the IMF had with the government to set aside financial sector payments in determining fiscal deficit at some point under the Ghana-IMF program, which ended in 2019, because the financial sector payment was not anticipated during the original design of the programme.

    “For example during the program that expired in April 2019, when the issue of the financial sector came up, because initially in the design of the program, this is something that was not anticipated, and the program aimed to achieve some fiscal target, a decision was made that the financial sector really needed to be taken care of.”

    “And if you really want a true picture of the fiscal effort that the government is making, we need to strip out financial sector cost. Because this is a necessary action so that you can generate economic quotes in the future so we agreed on that.”

    “On the financial sector payment, we agreed to put them aside and just measure the fiscal effort without financial sector cost.”

     

    Source: www.ghanaweb.com

     

     

  • ESLA makes GH¢581m debt payment to bondholders

    ESLA Plc. has announced the servicing of its debt to the tune of GH¢581.30 million to holders of ESLA 2024, 2027 and 2029 bonds from the Energy Debt Service Account (DSRA)

    A total of about GH¢214.8 million and GH¢267.1 million, representing net interest and withholding statement amount due to Tranche E1 and E2 bondholders respectively, has been transferred from the DSRA Bank to the Paying Bank.

    The payment is being made in accordance with the terms of the Bond Prospectus which states that disbursements for repayments will be made from the DSRA by the DSRA Bank to the trust account of the paying bank from the 90th day of the calendar year before any interest Payment Date.

    Last year, ESLA made an amendment to decrease the Debt Service Coverage Ratio from 2x to 1.25x under Condition 12.3(c) of the Prospectus, in order to issue GHc 260 million worth of additional bonds for the outstanding energy sector debts.

    This meant that the ESLA inflows would only be required to cover one and a quarter times the value of debt servicing obligations to bond holders rather than two times as agreed with bondholders at the time of the offer, which indeed provided the comfort that influenced them to subscribe to the bonds.

    By reducing the cover, more ESLA bonds can be issued for the same expected inflows from the levy underpinning their issuance. While the lower debt coverage ratio will have caused some original bond holders some degree of worry, they are however comforted by the fact that ultimately government would stand ready to cover any shortfalls, in order to preserve its credibility.

    The statement further indicates that an amount of about GHc 99.250 million has also been transferred from the DSRA Bank to the Paying Bank.

    As at March 2020, the ESLA Receivables Account had accrued an amounts of GH¢443.6 million towards servicing the bond programme,

    Since its inception, ESLA Plc has issued bonds worth GH¢6.664 billion, from issuances in November 2017 (7-year tranche E1 and 10-year tranche E2), January 2018 (tap of 10-year tranche E2-B), August 2018 (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3), August (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3).

    Source: goldstreetbusiness.com

  • Anxiety grips Ken Ofori-Atta as he undergoes coronavirus test

    Minister of Finance Ken Ofori-Atta has tested for Coronavirus.

    This could be part of a measure by government to have all appointees tested for the novel viral disease, which has so far claimed eight lives in Ghana.

    President Nana Addo Dankwa Akufo-Addo and his family underwent the tests last month, a day before his birthday. Results were negative.

    Staff of his office, numbering 98, also underwent tests.

    Government appointees were also rostered to undergo tests in order to clear them, especially those who lead the fight against coronavirus.

    On Thursday, writing in the Financial Times, Mr Ofori-Atta announced that he has also undergone the test for Covid-19.

    “I have also been tested for Covid-19 and am anxiously awaiting the results,” he stated.

    He concluded his piece: “I am sleepy. I murmur through Psalm 23: “The Lord is my shepherd . . .”

    Source: 3news.com

  • ESLA transfers GH¢581m to Debt Service Account

    The Energy Support Levy Act (ESLA) has announced to holders of ESLA 2024, 2027 and 2029 bonds the transfer of a total of GHS581.3 million from the Debt Service Account (DSRA) Bank to the Paying Bank.

    Approximately, GH¢214.8 million and GH¢267.1 million, representing net interest and withholding statement amount due to Tranche E1 and E2 bondholders respectively, have been transferred from the DSRA Bank to the Paying Bank.

    According to a statement from ESLA Plc, an amount of approximately GHS99.250 million has also been transferred from the DSRA Bank to the Paying Bank.

    This is in accordance with the terms of the Bond Prospectus which states that disbursements for repayments will be made from the DSRA by the DSRA Bank to the trust account of the paying bank from the 90th calendar before any interest Payment Date.

    The statement emphasised that ESLA collections in 2020 received in the ESLA Receivables Account towards servicing the bond programme amounts to GHS 443.6 million as at March 2020.

    The board and management of ESLA added that it will continue to keep bondholders updated on all upcoming coupon payments by ESLA plc.

    Since its inception, ESLA Plc has issued bonds worth GH¢6.664 billion.

    This resulted from issuances in November 2017 (7-year tranche E1 and 10-year tranche E2), January 2018 (tap of 10-year tranche E2-B), August 2018 (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3), August (tap of 10-year tranche E2-C) and June 2019 (10-year tranche E3).

    Source: classfmonline.com

  • Ofori-Atta presents document on COVID-19 Alleviation Programme to Parliament

    The Minister for Finance, Ken Ofori–Atta, has presented to Parliament the policy document on the Coronavirus Alleviation Programme (CAP).

    The Ministry is seeking approval to spend ₵1.2 billion.

    Giving the breakdown, the sector minister said GH₵280 million will go into food packages and hot meals.

    An amount of GH₵40 million has been allocated to the National Buffer Stock Company.

    An additional GH₵200 million will be used to cater for bills on water and sanitation, GH₵241 will cover tax waiver for health personnel.

    The GH₵80 million will be spent on the allowance for health staff; GH¢2 million will  cover transportation for health workers; and GH₵600 million to be disbursed as soft loans to businesses.

    Final Statement to Parliament COVID-19 Alleviation Programme by The Independent Ghana on Scribd

    Source: theghanareport.com

  • ESLA raises GH¢1.19 billion from 12-year bond

    GH¢1.19 billion was raised from a 12-year bond issued by Energy Sector Support Levy (ESLA) PLC on 24 March, 2020.

    The debt instrument which will mature on 29 December, 2031 had a yield of between 20.50 and 23.50%.

    ESLA had targeted GH¢600 million from the offer. However, the minimum offer was GH¢300 million while the maximum was GH¢1.86 billion

    Class Business understands that proceeds from the issuance will be used to settle portions of the outstanding legacy debt and other obligations due suppliers and other creditors within the energy sector.

    ESLA said it will continue to undertake buyback and cancellation of outstanding bonds using proceeds in the Lock Box Account via open market operations.

    The debt instrument which was originally issued on 13 January, 2020 was opened to investors on Tuesday 24 March, 2020.

    The offer constituted Tranche E4-B under the GH¢10 billion bond programme.

    ESLA said the target size of the Tranche E4-B is GH¢600 million. However, the minimum offer to be accepted by

    ESLA PLC has since inception issued bonds worth GH¢7.09 billion.

    This includes issuances in November 2017 (7-year tranche E1 and 10-year tranche E2-C), January 2018 (Re-opening of 10-year tranche E2-B), August 2018, June 2019 and January 2020.

    The establishment of ESLA has enabled government to settle all the legacy debts owed the banks.

    source: classfmonline.com

  • ESLA raises GH¢1.19 billion from 12-year bond

    GH¢1.19 billion was raised from a 12-year bond issued by Energy Sector Support Levy (ESLA) PLC on 24 March, 2020.

    The debt instrument which will mature on 29 December, 2031 had a yield of between 20.50 and 23.50%.

    ESLA had targeted GH¢600 million from the offer. However, the minimum offer was GH¢300 million while the maximum was GH¢1.86 billion

    Class Business understands that proceeds from the issuance will be used to settle portions of the outstanding legacy debt and other obligations due suppliers and other creditors within the energy sector.

    ESLA said it will continue to undertake buyback and cancellation of outstanding bonds using proceeds in the Lock Box Account via open market operations.

    The debt instrument which was originally issued on 13 January, 2020 was opened to investors on Tuesday 24 March, 2020.

    The offer constituted Tranche E4-B under the GH¢10 billion bond programme.

    ESLA said the target size of the Tranche E4-B is GH¢600 million. However, the minimum offer to be accepted by

    ESLA PLC has since inception issued bonds worth GH¢7.09 billion.

    This includes issuances in November 2017 (7-year tranche E1 and 10-year tranche E2-C), January 2018 (Re-opening of 10-year tranche E2-B), August 2018, June 2019 and January 2020.

    The establishment of ESLA has enabled government to settle all the legacy debts owed the banks.

    Source: classfmonline.com

  • ASEPA ranks Ken Ofori Atta as one of the worst performing Ministers

    Political think-tank Alliance Social Equity and Public Accountability (ASEPA) has ranked the Minister of Finance, Ken Ofori Atta as one of the worst performing ministers.

    In a 2019 Ministerial Performance Tracking report, they listed the Finance Minister alongside the Minister for Sanitation, Cecilia Dapaah and Hajia Alima Mahama, the Minister of Local Government as the worst performing ministers under Nana Addo Dankwa Akufo-Addo.

    Read: Sanitation Minister worst-performing Minister ASEPA report

    The report used 10 experts/Policy Analyst and 5000 public respondents sampled purposively across three regions.

    Respondents for the survey, according to ASEPA, were sampled from, Civil Societies, the Media, Clergy, Students as well as lower and middle-income groups.

    The report also recommended for the immediate scrap of the following: Special Development Initiative; Business Development, Planning; Inner City and Zongo Development; and the Minister of State at the Presidency in Charge of Agriculture.

    Read: Arrest Mahama and Bagbin now Minister directs police

    The report also placed the Finance Ministry as the second-worst performing Ministry and second-worst performing minister respectively.

    The report, which assesses the performance of the various Ministries and Ministers on five key performance indicators has also found some key ministries to be under performing while giving others very high marks.

     

    Source: www.pulse.com.gh