President John Mahama has said the Ghanaian economy is now more predictable and no longer bleeding as it used to be in the past. This is because his administration was able to identify the various factors that led to the bleeding of the economy before they went for the current IMF bailout. Giving highlights of … Read more
Doe, James W. Central government borrowing results in National debt as we all know. But all the debt debate in Ghana should be put in a global perspective. In order for all to know the full story and see the true picture it is good to most importantly to confront debt with capital investment outlays; … Read more
Groupe Nduom (GN) Research has added its voice to expert views on the Ghanaian economy, describing it as one in distress. It said Ghana’s economy has been on a persistent decline over the past four years, coupled with its vulnerability to external shocks. According to its half-year review of the economy, GN Research noted for … Read more
Consumers of petroleum products will have to stomach the burden of paying the Tema Oil Refinery (TOR) Debt Recovery Levy for at least another 10 years as debt owed by the country’s sole oil refinery reaches its peak, Kwame Awuah-Darko, Managing Director of TOR has said. The notice of the TOR boss, which is expected … Read more
Workers of Volta Lake, a company contracted by the Government to clean the Albert Bosomtwe Sam Fishing Harbour in Sekondi have disclosed that they are yet to be paid their full salaries more than a year after their engagement The disgruntled workers numbering over 30 claim the Manageress of the Company, one Dinah Mensah has … Read more
The Ghana Bankers Association has appealed to power companies to abide by rules governing the Escrow Account with the Bank of Ghana (BoG) to prevent a future Legacy Debt in the power sector. The Escrow Account was created as part of the Petroleum Levy Law passed as an act of parliament to help government clear … Read more
Finance Minister Seth Terkper has expressed hope that a milestone agreement reached with creditors over VRA’s debts will be enough to ease holdup in discussions with the International Monetary Fund (IMF) over the ongoing bailout programme. The Minister, on Wednesday, told the press at a meeting also attended by bigshots of the banks the VRA … Read more
The Ministry of Finance, the Bank of Ghana (BoG), and the Ghana Bankers Association have announced plans to pay the legacy debt owed in the power sector. According to the Ministry of Finance, government has arranged with the Bank of Ghana to create an escrow account to transfer 250 million cedis to settle part of … Read more
Government owes power producers and the Electricity Company of Ghana (ECG) over GHC3 billion. The amount comprises GHC2.2 billion owed by Volta River Authority (VRA) to its lenders and a ‘legacy debt’ of GHC728 million owed ECG by government. The total debt excludes other monies owed Independent Power Producers (IPPs). The situation led to the … Read more
Three economic research agencies have rejected government’s claims of a robust Ghanaian economy in 2017 and have rather painted a gloomy picture. Moody’s Ratings Agency has maintained its downgrade of Ghana’s sovereign ratings at B3 warning of a negative outlook for the economy, the Institute for Fiscal Studies (IFS) says Ghana’s economy is too weak … Read more
Government has reached an agreement in principle with local banks to restructure the debts of State Owned Enterprises (SOEs). The agreement with the banks is expected to ensure the repayment of SOEs’ legacy debt which poses risk to the banking sector. Finance Minister, Seth Terkper, who disclosed this at a press briefing in Accra yesterday, … Read more
Lord I lift Your name on high, Lord I love to sing Your praises I’m so glad you’re in my life, I’m so glad you came to save us You came from Heaven to earth to show the way, From the earth to the cross, my debt to pay From the cross to the grave, … Read more
The government of Ghana attempt to float the fifth Eurobond fortnight ago received a lukewarm response from investors on the international market. This forced the Finance Ministry to withdraw the sale. The situation highlighted investors’ sentiments about the health of the Ghanaian economy which appears to be in a debt trap. The dramatic slowdown in … Read more
Tema Oil Refinery Limited (TOR), Ghana’s only processor of crude into fuels, is seeking to convert bank loans it had contracted from banks into a 10-year bond for its lenders in order to reorganize its debt and streamline repayment. Even though details of how the bond would be converted into bonds is expected to be … Read more
Government has dismissed reports that it has abandoned its decision to issue yet another Eurobond this year. According to Finance Minister, Seth Terkper, government is still considering the various markets and devise strategies to pay off maturing debts. “What we did was to suspend pricing because considering the money in the stabilization fund and the … Read more
An economist with the Institute of Fiscal Studies has questioned Ghana’s new gross domestic product figures put out by the government, describing it as inaccurate. At the presentation of a supplementary budget to parliament on July 25, government announced a decline in the country’s GDP ratio from 72 per cent to 63 per cent, which … Read more
Saddled by debts, the Accra Psychiatric Hospital is closed to new patients, a situation that will persist until government’s promise to help has been fulfilled. The hospital says it will remain closed to new patients until some GHC1.6 million promised by the Ministry of Health hits the account of the hospital. Public Relations Officer of … Read more
HFC bank has told Citi Business News it will await a court ruling before it makes its next move following Finatrade’s indebtedness to it. HFC is one of many banks Finatrade is currently indebted to. Finatrade’s indebtedness to HFC and other banks in the country is reported to be in the tune of about 1 … Read more
Financial Analyst, Sydney Casley Hayford has said government will eventually privatise the Volta River Authority since it has become financially handicapped to continue operating as a state owned enterprise. Speaking on Citi FM’s News Analysis Programme, The Big Issue, Sydney Casley Hayford argued that the VRA has become financially unprofitable because the Authority is cash … Read more
The Chief Executive Officer of Dalex Finance, Mr Ken Thompson, says the risk of default on Finatrade’s GH¢1.2 billion debt to 26 banks could have been minimised, if the affected institutions were more thorough in their assessment of the company’s loan requests and in particular, the interdependencies that existed. If the banks exercised some extra … Read more