GT Bank, Nigeria’s largest bank by market value, has announced that it will be reducing its lending and bond trading activities in Ghana due to a $77 million loss.
The bank will instead focus on other high-yielding African markets to increase lending by 15% in 2023. GT Bank plans to expand credit by no more than 5% in Ghana and limit its securities investments to treasury bills.
The CEO, Segun Agbaje, cited Ghana’s harsh operating environment and high inflation rate as reasons for the difficulty of businesses to generate profits and repay loans.
Ghana’s restructuring of its public debt worth $49 billion has also caused losses for financial institutions, with GT Bank facing a challenging time in its second-largest market.
Most foreign creditors are still in negotiations with the authorities regarding the issue.
GT Bank had 167.6 billion naira of debt securities in Ghana, while rival Zenith Bank had set aside 123.4 billion naira to account for the restructuring.