Ghana is in a debt crisis. Despite having had significant amounts of debt cancelled a decade ago, the country is losing around 30% of government revenue in external debt payments each year. 1 Such huge payments are only possible because Ghana has been able to take on more loans from institutions such as the International … Read more
A new report, jointly published by seven organizations, has revealed that Ghana is in a debt crisis because the country is losing around 30% of government revenue in external debt payments each year. It attributed the situation to a combination of the recent fall in the price of commodities and the loans not being used … Read more
A NEW report, jointly published by seven organizations, has revealed that Ghana is in a debt crisis because the country is losing around 30% of government revenue in external debt payments each year. It attributed the situation to a combination of the recent fall in the price of commodities and the loans not being used … Read more
The accounts of Ghana’s Ministry of Youth and Sports has been frozen by a court order, a situation that has rendered the ministry incapable of effecting its day-to-day activities. The sports ministry continues to be plagued by concatenated weigh downs and the latest being a long-term creditor securing an order from the court to freeze … Read more
President John Mahama has said accusations that his government has ballooned the country’s debt stock are not true, rather accusing the main opposition New Patriotic Party (NPP) of doubling Ghana’s debt while in office between 2001 and 2008. Vice-presidential candidate of the NPP, Dr Mahamudu Bawumia has constantly accused Mr Mahama and the NDC government … Read more
Ghana is in a debt crisis. Having had significant amounts of debt cancelled a decade ago, the country is losing around 30% of government revenue in external debt payments each year. Ghana’s crisis is the result of a gradual increase in lending and borrowing off the back of the discovery of oil and high commodity prices. … Read more
Chief Executive of Dalex Finance, Ken Thompson, has cast doubt over government’s ability to tackle the public debt in good time to the benefit of the economy. As at July this year, the country’s total debt had hit GH¢110 billion representing about 66 percent of Gross Domestic Production (GDP). Government has downplayed suggestions this is … Read more
The government last week trapped additional foreign exchange into its vault when it issued a United States dollar-denominated bond on the local market to raise a total of $94.64 million at a coupon rate (interest rate) of six per cent. The offer attracted a total of 26 bids from resident investors only with a face … Read more
Government successfully issued a US Dollar denominated bond on the domestic bond market. ? ?The 2-year bond issued last Thursday was highly subscribed to an amount of $94.64 million at a coupon rate of 6 percent, which is consistent with the initial price range of between 5.5 percent and 6.5 percent.? On settlement, this 2-year … Read more
Government’s efforts to address the debt position of four key state-owned enterprises in the energy sector has left the International Monetary Fund (IMF) flummoxed as to how the debt restructuring strategy will absolve the companies from plunging themselves in future debts. The borrowings of the four firms- VRA, ECG, GRIDCo and TOR- hit GH¢19 billion … Read more
The World Bank President says he does not think Ghana and other African countries with high debt levels are at risk of falling into debt distress or “Highly Indebted Poor Country (HIPC)” category. Jim Young Kim was responding to a question about how the rising debt levels of some African countries, especially for those that … Read more
The Official Liquidator has disclosed that payments to creditors of DKM Microfinance are set to commence on Monday, October 17, 2016. A statement released by the Registrar General’s Department and copied to Citi Business News said, “There will be payment of dividends to unsecured creditors of DKM Diamond Microfinance Limited (hereinafter called ‘DKM’) whose claims … Read more
The World Bank President says he does not think Ghana and other African countries with high debt levels are at risk of falling into debt distress or “Highly Indebted Poor Country (HIPC)” category. Jim Young Kim was responding to a question about how the rising debt levels of some African countries, especially for those that … Read more
The Global Lead for Credit Infrastructure at the World Bank, Mahesh Uttamchandani has described as acceptable, government’s intervention in the DKM microfinance scam to help customers get back their investments. According to him, unlike corporate private entities, an insolvency involving financial institutions like DKM, have larger societal impact which have dire economic implications. “A regime … Read more
The West African Gas Pipeline Company (WAPCo) has warned that it will take drastic action against the government of Ghana if it fails to pay debt owed the company by close of year 2016. According to the company, government’s outstanding balance of 162 million dollars of which 98 million dollars is owed to WAPCo, and … Read more
President John Mahama has stated that the recent upgrade from negative to stable by International rating firm, Moody’s is an indication that his government is “doing something right.” Addressing journalists at the Kotoka International Airport upon his return from France Wednesday evening, President Mahama said “In my absence we were pleased to hear that Moody’s … Read more
Government’s desire to borrow more funds continues to grow as the Ministry of Finance targets Ghanaians in the diaspora to raise bonds from them. In recent times, government’s decision to borrow from the international market has been heavily criticized as piling up the debt stock of the country, affecting interest rates. But speaking to Citi … Read more
The Governor of the Bank of Ghana (BoG), Dr Abdul Nashiru Issahaku, has given the strongest indication that with the debt owed to commercial bank by the Volta River Authority (VRA) now partly settled, performance in the banking sector will improve tremendously. The government, at the beginning of this month, made an upfront payment of … Read more
The governing National Democratic Congress (NDC) has rejected claims that it is piling up the country’s debt stock with the number of foreign loans it had acquired in recent times. Speaking at the “Setting the records straight” series at the party’s headquarters in Accra today [Thursday], the Minister of Transport, Fifi Kwetey said government is … Read more
Fears of a likely collapse of a number of banks in the country have been reinforced following new revelations that government may not abide by the agreed payment plan to clear debts owed banks by Bulk Oil Distribution Companies (BDCs). Government is currently indebted to about 17 Bulk Distribution Companies (BDC)s in excess of 500 … Read more