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Ghana Set To Request For $1.5 Billion Loan From IMF

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Ghana Set To Request For $1.5 Billion Loan From IMF

Ghana is likely to ask the International Monetary Fund (IMF) for as much as $1.5 billion in a quest to strengthen its finances and regain access to international capital markets.

This was disclosed by the country’s Finance Minister, Ken Ofori-Atta in a phone interview with Bloomberg, hours before talks begin with the IMF in the nation’s capital, Accra.

Until now, Ghana, the continent’s second-biggest gold producer, had refused to seek IMF support to rescue an economy crippled by the pandemic, rampant inflation, and a depreciating currency, despite analysts warning it is close to a debt crisis.

What Ghana’s Finance Minister is saying

Ofori-Atta stated that it was a hard decision, but the right one “because the global outlook was really grim and its negative effects on the Ghanaian economy was glaring.”

After Moody’s Investors Service cut Ghana’s rating, the nation lost access to overseas capital markets and “hence our inability to get the needed dollars, which created balance of payment problems and a possible rundown of our reserves.”

Ghana will present the IMF with its own plans. The nation’s finance ministry said on Tuesday in an emailed statement that the government’s plan, which would last at least three years, aims to restore debt sustainability and macroeconomic stability, improve the monetary policy of the central bank, and provide buffers against economic shocks.

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“This program allows for a catalytic engagement, including regaining access to the capital market,” Ofori-Atta said in the interview, adding that Egypt’s talks with IMF earlier this year encouraged the North African nation to sell Samurai bonds.

What you should know

  • The Ghanaian cedi came under pressure after racking up a whopping loss of 22.44% against the US dollar. This comes despite the attempt by Ghana’s central bank to hike interest rates to offset shortfalls caused by global tensions in Europe
  • Ghana’s foreign-exchange reserves have dropped to $8.3 billion at the end of April, from $9.7 billion at the end of last year.
  • The nation’s central bank in May lifted its benchmark interest rate by 200 basis points to 19% in a bid to slow inflation, which accelerated at 27.6% in May.
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Furthermore, the conflict between Russia and Ukraine is expected to have a substantial impact on Ghana’s exchange rate, particularly in the construction, agriculture, and international trade sectors.

Russia and Ukraine accounted for around 2.5%  of Ghana’s total, non-oil imports and 0.4%  of Ghana’s total exports in the recent past.

Ghana has been working to reduce its debt, which at the end of March 2022 was 78% of its GDP, up from 62.5% five years earlier.

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Source: www.GhanaCNN.com

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Denounce Akamba; He Does Not Deserve To Be National Organizer – Blakk Rasta To NDC

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Denounce Akamba; He Does Not Deserve To Be National Organizer – Blakk Rasta To NDC

Popular Radio Host and Musician, Blakk Rasta has tasked the National Democratic Congress (NDC) to disown pronouncement by its National Organizer, Joshua Akamba.

His call is as a result of comments made by Mr. Akamba suggesting the NDC made a mistake in firing Victoria Hamah for allegedly seeking to amass wealth.

Speaking on Kumasi based Ultimate FM Mr. Akamba said the party on hindsight would have retained the deputy minister and not acted on the pressure from the NPP.

“I think she was not given a fair treatment; I know Vicky as an honest woman, everybody aspires to make some money, she didn’t say I have made or there was no evidence that I have stolen, yet again we listened to the NPP and took that action.

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“It was the NPP that pushed this action, directed our action, today I can tell you that Vicky cannot be a corrupt person, I know her. She is still an active member; I think she even contested Kintampo North or West.” He said.

But Blakk Rasta is least pleased about the comments of the National Organizer.

According to him, such comments should not be encouraged and could cost the party and its possible flagbearer John Dramani Mahama.

He predicts that the comment from Joshua Akamba could work against the fortunes of John Mahama and the NDC in the 2024 elections.

“These are the people who will make sure Mahama will not become president again. For this guy alone, Mahama will lose a million votes in the next elections. If I were the NDC, I would kick out this guy called Akamba right now.

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Adding that, “the reason for which Victoria Hamah was kicked out, this guy is endorsing the same. You are in government and heard on tape saying that all you want is one million dollars and that is it. It’s not about the people you promised to serve, it is no more about the nation. It has nothing to do with the nation but your ego and selfishness of enriching yourself.

“You sit here and tell me Victoria Hamah was offered a raw deal. Such a fool. This guy is supposed to be who? National Organizer? The NDC should come out and denounced this guy and distance itself from his comments. I’m angry at this thing that I’m reading.” Blakk Rasta fumed on his show.

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Source: www.GhanaCNN.com

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Ghana Will Not Recognize Any Ukraine Territory Annexed By Russia : Foreign Affairs Minister

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Ghana Will Not Recognize Any Ukraine Territory Annexed By Russia : Foreign Affairs Minister

Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, says Ghana will not recognize any annexation of Ukrainian territories by the Russian Federation.

Addressing a special meeting of the United Nations (UN) Security Council on the maintenance of the peace and security of Ukraine in New York City today Thursday 22 September 2022, Shirley Ayorkor Botchwey noted that Ghana remains committed to its position that the Russian invasion of Ukraine is in breach of international law and unjustified.

“We have expressed several times our principled position against the aggression on Ukraine which we consider to be a disregard for the rules of international law and the principles of the charter (UN Charter).
Ukraine as a sovereign state and a member of this organization (UN) has every right, we believe, and indeed a responsibility to defend its territorial integrity and political independence,” Foreign Minister Shirley Ayorkor Botchwey said.

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“Ghana does not, and will not recognize any territory that is unilaterally and forcefully acquired as dismembered from a sovereign entity,” Miss Botchwey added.

Cease fire

In her statement, the Minister for Foreign Affairs and Regional Integration reiterated Ghana’s call on the Russian Federation, to “immediately and unconditionally cease its operations, withdraw its troops from the internationally recognized borders of Ukraine”, and respect its western neighbour’s “sovereignty and political independence.”

“The need for a credible pathway for a genuine diplomatic process is urgent. The barrel of the gun does not provide such a pathway. It only leads to needless loss of lives and destruction on both sides. Indeed, the cost of the war has been high, not only for the parties, but also for the rest of the world,” Shirley Ayorkor Botchwey said.

Proposed referenda

After stunning battlefield setbacks in the last two weeks, Russia moved to cement its grip on territory it occupies in eastern and southern Ukraine (Zaporizhzhia, Kherson, Donetsk and Luhansk) as Kremlin proxies and associates announced plans on Tuesday 21 September 2022, for referendums on annexation to Russia, indicating a possible escalation of the seven-month-old war.

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The Kremlin signaled that if Russia were to go forward with annexation, even if no other country recognized it, any further military action by Ukraine in those regions would be seen as an attack on Russia itself, justifying any military response by the nation with the world’s largest nuclear arsenal.

Partial mobilization

In what is seen by several international law experts as an escalation of Russia’s war in Ukraine, President Vladimir Putin, announced on Tuesday 21 September 2022, a “partial mobilization” of Russian citizens in what would see 300,000 reservists called up, according to the Defence Minister of Russia, Sergei Shoigu.

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Putin in his announcement said those with military experience would be subject to conscription, and stressed that the decree, which was already signed, was necessary to “protect our homeland, its sovereignty and its territorial integrity.” The announcement by Putin has been received with widespread protests in Russia as some have sought to flee the country to escape the impending conscription.

Source: www.GhanaCNN.com

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You Must Be Living On Another Planet: Prof Hanke Fires Gabby For Saying Akufo-Addo Deserves Praises

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You Must Be Living On Another Planet: Prof Hanke Fires Gabby For Saying Akufo-Addo Deserves Praises

A Professor at the Johns Hopkins University, Steve Hanke says Gabby Otchere-Darko, a leading member of the governing New Patriotic Party (NPP) must be on another planet for saying that the Akufo-Addo administration deserves praise for prudent economic management despite all the challenges.

Mr Otchere-Darko earlier observed that despite slump in revenues, bills are being paid, including salaries.

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Roads are also being fixed, money has been found for programmes like YouStart to create jobs for the teeming youth.

In a tweet he said “The Akufo-Addo government and, in particular, MoF, deserve the nation’s commendation for their handling of the economy in these most challenging times. Despite slump in revenues, bills are being paid, including salaries, roads being fixed, & money found for programmes like YouStart.”

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But responding to him also in a tweet, Prof Hanke said “Leading member of the New Patriotic Party (NPP) Gabby Otchere-Darko says Pres. Akufo-Addo deserves ‘praise’ for his handling of the economy.

“SPOILER ALERT: Otchere-Darko must be on another planet. Today, I measure #Ghana‘s inflation at a stunning 81%/yr.”

Source: www.GhanaCNN.com

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