Economic Issues

Ghana’s Top Banks Post Heavy Losses Due To Domestic Debt Exchange Programm

Ghana’s Top Banks Post Heavy Losses Due To Domestic Debt Exchange Programme 26, 2023 10:01 AM

Top banks in Ghana have posted heavy losses due largely to the government’s domestic and foreign debt restructuring drive.×250&!2&fsb=1&xpc=FTqT5UKxl0&p=https%3A//

PAY ATTENTION: Enjoy reading our stories? Join’s Telegram channel for more!

The Domestic Debt Restructuring Programme (DDEP) and the foreign debt restructuring are being led by finance minister Ken Ofori-Atta. They seek to alter an agreed plan between the government of Ghana and lenders on how to repay loans.

The Government of Ghana and the Ofori-Atta-led finance ministry have said the country is cash-strapped and won’t be able to honour its domestic and foreign debt obligations.

Ofori-Atta's DDEP has been blamed for losses recorded by banks in 2022.
Finance minister Ken Ofori-Atta and a hand counting Ghana cedi notes. Source: Getty Images. Source: Getty Images

GCB and StanChart record big losses in 2022×250&!3&btvi=1&fsb=1&xpc=Ycuv6DSk2g&p=https%3A//

There have been deep concerns by local bondholders and industry watchers about how the government is going about the restructuring, however, the 2022 Audited Financial Statements released by some banks show the debt programme has already taken a toll.

Read also

Asian stocks mostly down after mixed session on Wall Street

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Ahead of an April 30, 2023, deadline, Ghanaian banks have been posting their 2022 performance and it shows top banks like Standard Chartered Bank and GCB Bank bled money.

For instance, Bloomberg reports that Ghana’s largest lender by assets GCB recorded a GH¢593.4 million net loss for the year ending December 2022. GCB’s loss is its first since 1993, reports Bloomberg.

StanChart, another big bank in Ghana, also posted a loss of GH¢297.8 million.

GT Bank’s parent company, others take steps to minimise risks×250&!4&btvi=2&fsb=1&xpc=4Dr0pQsZU5&p=https%3A//

Meanwhile, other reports indicate that parent companies of some banks operating in Ghana have taken steps to minimise risks over the government’s controversial debt restructuring move.

Joy Business reports that Guaranty Trust Bank, First National Bank, Stanbic and Zenith have already hinted at significant losses by their Ghana subsidiaries due to the impact of the DDEP on their operations.

Read also

Investors look for strength in UBS results

GT Bank Ghana’s parent company, Guaranty Trust Holding Co., Nigeria has resolved to slow lending and bond trading in Ghana.

Alhassan told that Ghana’s road to economic recovery would be long and difficult starting in 2023.

Solar Panels: See How Much It Will Cost To Install Them (Search Prices)Solar SystemsLearn More

Unsold Cars From 2021 Are Almost Being Given AwayUnsold Cars | Search AdsRead More

Your Sleeping Position Tells a Lot About Your PersonalityHome Tricks

Ghana Citizens Can sign up for Canada Permanent Resident CardCanada Immigration | Search Ads

by Taboola

Sponsored Links×300&!5&btvi=3&fsb=1&xpc=DrToChvvgM&p=https%3A//

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s