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    We did not provide guarantees to IPPs – World Bank clarifies

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    Ghana’s energy sector debt reduced to $1.5 billion – Amewu

    GCNET appeals against Labour Court ruling on redundancy pay

    KIA workers to withdraw services to demand removal of MD

    Support for indigenous companies needed to create more jobs – Opoku Prempeh

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    We did not provide guarantees to IPPs – World Bank clarifies

    Kristianne Reindorf Osei, MD, Twelve Springs Investment Group.

    Meet Kristianne Reindorf Osei; the Young Ghanaian MD of a real estate company bagging global awards

    KIA workers to withdraw services to demand removal of MD

    Managing Director and CEO of UBA Ghana, Olalekan Balogun.

    UBA Ghana restates commitment to provide fast and secure remittance service with Africash

    Support for indigenous companies needed to create more jobs – Opoku Prempeh

    Victor Yaw Asante,
FBNBank Ghana MD/CEO

    SMEs need to master ICUMS, attract credit in order to benefit from enormous AfCFTA opportunities – FBNBank MD

    Gas sub-sector becoming a fiscal burden to the country – IES study

    WAPCo’s role as a reliable partner in cleaner energy supply enhanced [ARTICLE]

    Don’t charge new rates until 3rd quarter – Shipping lines urged

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    Huawei Y7a; Enjoy poster level shots at the touch of a button!

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    Standout while staying healthy and fit with the sleek HUAWEI WATCH FIT

    Five reasons why you should get the HUAWEI Y7a

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    World Bank appoints Senegal’s Makhtar Diop as Managing Director of IFC

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    WTO Appoints Nigeria’s Ngozi Okonjo-Iweala as First Female Leader

    Ghana-UK finalize negotiations on new interim Trade Partnership Agreement

    Go City Cycle Share & Tour promotes bike-sharing culture in Ghana

    Mastercard, UNICAF offer cardholders 75% scholarships for internationally recognized degrees

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    We did not provide guarantees to IPPs – World Bank clarifies

    139,331 jobs created from 1D1F so far – Alan Kyerematen

    Ghana’s energy sector debt reduced to $1.5 billion – Amewu

    GCNET appeals against Labour Court ruling on redundancy pay

    KIA workers to withdraw services to demand removal of MD

    Support for indigenous companies needed to create more jobs – Opoku Prempeh

    Gas sub-sector becoming a fiscal burden to the country – IES study

    WAPCo’s role as a reliable partner in cleaner energy supply enhanced [ARTICLE]

    Ghana cedi expected to be stable for the rest of 2021

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    We did not provide guarantees to IPPs – World Bank clarifies

    Kristianne Reindorf Osei, MD, Twelve Springs Investment Group.

    Meet Kristianne Reindorf Osei; the Young Ghanaian MD of a real estate company bagging global awards

    KIA workers to withdraw services to demand removal of MD

    Managing Director and CEO of UBA Ghana, Olalekan Balogun.

    UBA Ghana restates commitment to provide fast and secure remittance service with Africash

    Support for indigenous companies needed to create more jobs – Opoku Prempeh

    Victor Yaw Asante,
FBNBank Ghana MD/CEO

    SMEs need to master ICUMS, attract credit in order to benefit from enormous AfCFTA opportunities – FBNBank MD

    Gas sub-sector becoming a fiscal burden to the country – IES study

    WAPCo’s role as a reliable partner in cleaner energy supply enhanced [ARTICLE]

    Don’t charge new rates until 3rd quarter – Shipping lines urged

  • TECHNOLOGY

    Huawei Y7a; Enjoy poster level shots at the touch of a button!

    Looking for a Balanced School Life? Here is a Gadget Guide for You

    Stress-test your systems against possible cyber-attacks – BoG to banks

    Standout while staying healthy and fit with the sleek HUAWEI WATCH FIT

    Five reasons why you should get the HUAWEI Y7a

    Stallion Motors Ghana Ltd introduces ZxAuto Terralord pickup

    Enjoy longer reading pleasure with the new HUAWEI MatePad T

    Huawei announces innovative HUAWEI Y7a in Ghana

    Patience Akyianu joins Hubtel as non-Executive Director

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    World Bank appoints Senegal’s Makhtar Diop as Managing Director of IFC

    WTO Director General outlines plans to rejuvenate global trade

    WTO Appoints Nigeria’s Ngozi Okonjo-Iweala as First Female Leader

    Ghana-UK finalize negotiations on new interim Trade Partnership Agreement

    Go City Cycle Share & Tour promotes bike-sharing culture in Ghana

    Mastercard, UNICAF offer cardholders 75% scholarships for internationally recognized degrees

    Digital transactions for 2020 up by 103% – GhIPSS report

    Shift focus from upscaling to upgrading – Ofosu-Dorte urges businesses

    Ghana receives €9.7 million EU Grant to improve access to electricity

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BoG to finance government’s budget with ¢10bn to tackle COVID-19 impact

by Lawrence Segbefia
May 15, 2020
in Banking And Finance, Local Economy, Top Stories
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The Bank of Ghana says it will support the government’s budget with 10 billion cedis to enable it address the economic impact of COVID-19 on the country.

This will include an initial amount of 5.5 billion cedis of the COVID-19 relief bond.

The Governor of the central bank, Dr. Ernest Addison, disclosed this at a meeting with journalists where he announced the policy rate on Friday [May 15, 2020].

By this decision, the Bank of Ghana has set aside a Memorandum of Understanding with the IMF which bars it from financing the government’s budget which had been the case in previous years.

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“Under the circumstances and in line with section 30 of the Bank of Ghana Act (2002) Act 612 as amended, the Bank of Ghana has triggered the emergency financing provisions which permits the bank to increase the limit of Bank of Ghana’s purchases of government securities in the event of any emergencies to help finance the residual financing gap,” Dr. Addison remarked.

He added that “Today, under the Bank of Ghana’s asset purchase programme, the Bank of Ghana has purchased the government’s COVID-19 relief bond with a face value of 5.5 billion cedis at the monetary policy rate with ten year tenure and a moratorium of two years; principal and interest.”

The Governor further indicated that they will provide an additional 4.5 billion cedis through the purchase of government assets, but that will be dependent on developments going forward.

“The bank stands ready to continue with its assets purchase programme up to ten billion cedis in line with the current estimates of the financing gap from the COVID-19 pandemic,” he added.

Since 2016, the Bank of Ghana has stopped financing the government’s budget which had been viewed as a condition for the overrunning of budgets in successive years.

As part of measures to control budget overruns, government has passed the Fiscal Responsibility Act.

The law, among others, sets a cap of 5% for Ghana’s budget deficit – which is the difference between the revenue and expenditure for any given year.

Per the sanctions outlined in the law, any Finance Minister who flouts this directive is likely to face prosecution which could culminate in a jail sentence.

Already, the Resident Representative of the IMF to Ghana, Dr. Albert Touna Mama, has advised African governments to focus on investments in health in the interim, and shelve discussions on possible escalations of budget deficits due to the default in loan repayments.

 

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Ghana’s energy sector debt reduced to $1.5 billion – Amewu

GCNET appeals against Labour Court ruling on redundancy pay

KIA workers to withdraw services to demand removal of MD

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