The Bank of Ghana has expressed satisfaction at the structural and fiscal adjustments implemented under the International Monetary Fund (IMF)’s Extended Credit Facility (ECF) programme.
According to the central bank, these measures have begun yielding positive outcomes spurring economic growth as they stabilized the economy.
Speaking at the 2nd Ghana International Bank’s (GHIB) four-day Risk Management in Banks and Implications for Capital programme, First Deputy Governor of the Bank of Ghana and Director of GHIB, Millison Narh said Ghanaians will soon begin to feel the impact of the measures the fiscal authorities and the central bank have been implementing.
“Some of the measures that we needed to take in order to balance the economy included fiscal consolidation and stability. As we speak a lot of the measures that have been taken have actually yielded positive outcomes so we now see fiscal deficit declining from almost 12% to 6.7% as at the close of last year,” he stated.
Mr. Narh added, “Current accounts also declined from 10.6% to 7.8% and we are still in the process of ensuring lower outcomes for the current accounts as a result of the measures that we have taken. Ghanaians will soon feel the impact of these measures.”
Economic situation takes Ghana to IMF
Some critical ailing economic conditions compelled the government to go to the IMF for a bailout.
These included;rising inflation, slow economic growth, depreciation of the cedi amongst others.
However the signing onto the IMF programme has also seen a freeze in public sector employment, the cancellation of most government subsidies and a reduction in the public sector wage bill.
Raising capital to meet unexpected losses
Mr. Millison Narh also urged banks to put in place measures to absorb unexpected losses,
“Banks must hold sufficient capital to absorb unexpected losses. Risk management and implications for capital is a critical part of this process. At the central bank, we recognise the role that banks play in the economy and we are constantly reviewing prudential rules that cover the quantity and quality of capital, the basis for liquidity and counterparty risks,” he observed.
For his part, the Chief Executive and Managing Director of GHIB, Joe Mensah expressed his delighted at the bank’s ability to deliver programmes sharing with the banking community with issues and best practices in banking.
GHIB focuses on four key areas: international trade finance, correspondent and corporate banking, treasury and transactional banking services.
For organisations doing business in Africa, the bank provides a gateway to the global financial system, providing access and expertise, capital and extensive cross border capabilities.
The bank’s exposure in the region has been growing rapidly and is currently in excess of 350 million dollars.
The bank is considered a top tier bank in the London market in terms of profitability and operational efficiency.
The London based Ghana International Bank (GHIB) is organising its 2nd Annual four- day Risk Management in Banks and Implications for Capital programme in Accra, Ghana.
About twenty-five bankers and senior executives are attending the programme from the West African region.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana