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Deferral Of debt Payments Good omen  For The Cedi … says Ministry of Finance

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Mr. Ken Ofori-Atta, Finance Minister

The suspension of debt service payments on aspects of Ghana’s external debt – Eurobonds, Commercial loans and most Bilateral debts – due to ongoing debt restructuring exercise is expected to boost appreciation of the local currency, the cedi, a statement from the Finance Ministry, which was released yesterday has said.

But for restructuring exercise, the reserves at the Bank of Ghana would have been used to service these debts, thereby worsening the strength of the Cedi against the dollar.

However, with the suspension of the debt payment for the time being, these reserves at the BoG will be released to strengthen the performance of local currency against the foreign ones.

The rapid depreciation of the cedi, which has lost over 54% of its value between January and November 2022, added some GH¢93 billion to the public debt, but an appreciation of the local currency has recovered about 40% of the slide.

The COVID-19 pandemic, rising global food prices, rising crude oil and energy prices, and the Russia-Ukraine war adversely affected Ghana’s macro-economy, with spill overs to the financial sector.

The combination of adverse external shocks exposed Ghana to a surge in inflation, a large exchange rate depreciation and stress on the financing of the budget, which taken together have put the public debt on an unsustainable path.

Given the magnitude of the economic and social crisis that Ghana is confronted with, the GH¢137 billion domestic debt exchange programme launched earlier will not be enough to close the large financing gaps that Ghana faces over the coming years.

The Chronicle understands that the latest debt sustainability analysis demonstrated that Ghana is faced with a significant financing gap over the coming years, revealing that public debt is unsustainable.

Out of the GH¢467.4 billion total public debt stock as of October 2022, domestic debt was GH¢195.7 billion while external debt represents GH¢271.7 billion.

This represents approximately 75.9% of Gross Domestic Products (GDP) and the debt restructuring measures target to bring it down to 55% in the medium term.

The Chronicle is further told that total public debt stock exceeds 100% of GDP and these debts, including that of State-Owned Enterprises and all.

Projected interest payment on sovereign debt for 2023 is estimated at GH¢52.6 billion.

Debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues.

A total of GH¢137  billion of the domestic is being repackaged in a debt exchange programme, but the total amount of external debt on which interest payment has been suspended has not being stated.

According to the Ministry, the suspension will not include the payments of multilateral debt and new debts, whether multilateral or otherwise contracted after December 19, 2022 or debts related to certain short term trade facilities.

The statement explained that government is evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded.

Government is committed to engaging in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring exercise, in line with international best practices.

$3 billion IMF staff-level agreement

Ghana and the International Monetary Fund (IMF) reached a Staff Level Agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.

4 legged approach 

The debt restructuring which is expected to deal with high interest payments on the public debt is part of a four legged approach adopted by the government in 2023 budget, aimed at alleviating the pressures on the national budget and restoring debt sustainability.

4 New Ghana bonds

Domestic debt operation involves an exchange for new Ghana bonds with a coupon that steps up to 10% as soon as 2025 (with a first interest payment in 2024) and longer average maturity.

Maturing dates for the new bonds

Existing domestic bonds as of December 1 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

Predetermined allocation ratios

Predetermined allocation ratios are 17% for the short bonds, 17% for the intermediate bond, 25% for the medium-term bond and 41% for the long-term bond.

Annual coupon rates

The annual coupon rates on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Coupon payments will be semi-annual.

Eligible holders, who deliver valid offers at or prior to the expiration date that are accepted by the country, will receive at the settlement date in exchange for their eligible bonds accepted, the same aggregate principal amount distributed across new bonds due dates.

Offers end on December 19

Offers may only be submitted starting from December 5, 2022, and ending at 4:00 p.m. (Greenwich Mean Time (GMT)) on December 19, 2022.

However, government has extended the expiration date to Dec 30th 2022.

Only registered holders eligible

The invitation is available only to registered holders of eligible bonds that are not individual investors or that are otherwise authorised by the Government of Ghana, in its sole discretion, to participate in the Invitation.

Government said eligible holders tendering their eligible bonds pursuant to the invitation will receive new bonds of the country on the terms and subject to the conditions described in the Exchange Memorandum.

Alan Calls for more US Investment in Africa

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Alan John Kwadwo Kyerematen, Minister for Trade and Industry
President Akufo-Addo with Alan John Kwadwo Kyerematen in USA

The Minister for Trade and Industry, Alan John Kwadwo Kyerematen, has called on the United States of America to intensify investment in the agricultural sector, as part of major plans to economically empower the African continent. He was speaking at the US-African Leaders summit held in Washington DC recently.

The US-Africa Leaders’ Summit was anchored on the shared values of fostering new economic engagement; reinforcing the US-Africa commitment to democracy and human rights; mitigating the impact of COVID-19 and future pandemics.

It also focused on working collaboratively to strengthen regional and global health; promoting food security; advancing peace and security; responding to the climate crisis and amplifying Diaspora ties.

African Trade Ministers used the opportunity to stage a round table discussion with US Members of Congress and other high-ranking officials, led by Ambassador Katherine Tai, the US Trade Representative.

They also used the platform to discuss continental matters, with emphasis on the industrialisation agenda as exposed by recent external shocks that threaten most economies in Africa.

Speaking on behalf of the US Government, Ambassador Tai highlighted the importance of the US–Africa economic relationship in addressing current financial challenges and building a more resilient, sustainable and inclusive future.

Ambassador Tai reiterated the need for the two sides to work together to fulfil AGOA’s promise, by boosting the productive capacity of the continent and to pursue equitable growth for all segments of both societies.

Central among the many areas discussed was the extension of the African Growth and Opportunity Act (AGOA), which is set to expire in September 2025.

Mr Kyerematen, in his speech at the roundtable, called for the need for enhanced US investment in selected strategic sectors such as Agriculture and Agribusiness, oil and gas, blue ocean economy and investment in light manufacturing industries, support for the development of infrastructure including roads, rail, port infrastructure and renewable energy.

The longest serving Trade and Industry Minister in Ghana urged African leaders and the United States to identify key areas whose transformation will be felt by the average African amidst the global economic meltdown.

Mr Kyerematen also joined President Akufo-Addo to attend a series of high-profile meetings and events including the meetings with the Managing Director of International Monetary Fund (IMF) and the President of the World Bank Group.

He represented the President at the National Black Chamber of Commerce Business Forum, as well as the US Chamber of Commerce and Corporate Council on Africa’s Presidential Dialogue all in Washington DC.

The Ghana delegation has since returned home.

Abetifihene lauds exceptional leadership of Nana Boamah Ayiripe

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ISAAC AKWETEY-OKUNOR
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Nana Boamah Ayiripe III, Kwahu Nkwatiahene
Fore view of the ultra-modern court complex

The Chief of Abetifi in the of Kwahu Traditional Area, Nana Asiedu Agyemang, has paid glowing tribute to the Chief of Kwahu Nkwatia, Nana Boamah Ayiripe III, for installing  development-oriented persons as sub-chiefs.

The Abetifi Chief, who doubles as the Adontenghene of the Kwahu Traditional Area, described his colleague Chief of Nkwatia as a visionary traditional leader worthy of emulation. Nana Asiedu Agyemang made the pronouncement during the commissioning of an ultra-modern Kwahu Nkwatia Circuit Court Complex, funded by Nana Owiredu Wadie I, Development Chief of Kwahu Nkwatia, with support from his family.

The commission was in fulfilment of a promise by Nana Owiredu Wadie I, who is also the Founder of the Kabaka Foundation, to ensure access to justice for his people.

The ceremony further commemorated the first anniversary of his enstoolment as Nkosuohene of Kwahu Nkwatia. The idea for the construction of this court house came upon the realisation that the entire Kwahu East District had only a Magistrate Court that needed a Circuit Court or a High Court in the jurisdiction.

Some traditional leaders and His Lordship Richard Adjei Frimpong, performing the official commissioning ceremony of the Circuit Court

The installation of Nana Owiredu Wadie I, as Nkosuohene, has seen Kwahu Nkwatia challenging the other Kwahu towns with enviable projects such as an ultra-modern police barracks, a police divisional station, and the refurbishment of some schools among others.

The respected Adontenghene congratulated Nana Boamah Ayiripe III for the wise decision, consideration, and various steps to bring various developments and interventions to Nkwatia.

The Adontenghene appealed to the Chief Justice, through his representative, His Lordship Justice Agyei Frimpong, an Appeal Court Judge, to elevate the status of the Circuit Court Complex to a High Court.

This is because the construction and commissioning of the Kwahu Circuit Court Complex was unprecedented and added to the ongoing investment in judiciary infrastructure by the government.

In a speech read by His Lordship Richard Adjei Frimpong on behalf of the Chief Justice (CJ), Justice Kwasi Anin Yeboah, he appealed to the traditional rulers to desist from addressing criminal matters in their palaces.

According to the CJ, it would be proper to allow the full rigors of the law to apply when people were found culpable, rather than reducing the palaces to courts in addressing criminal matters.

The CJ urged all Ghanaians to have confidence in the court process and make good use of the facility by referring all criminal cases to them, which are national assets and therefore must be cherished, protected and maintained appropriately for posterity.

Justice Kwasi Anin Yeboah stated that the bold initiative by Nana was not only a demonstration of support to the Judicial Service to enable it live up to to it mandate, it was also an act of patriotism which must be emulated by all well-meaning Ghanaians.

He continued that “it bears emphasising that we have a collective responsibility to ensure that democracy thrives in this country; and this cannot happen without a well-resourced Judiciary, which is the bastion of the rule of law.”

Justice Kwasi Anin Yeboah further stated: “It is our resolve as an institution to build a system of justice that assures our countrymen of efficient, timely and quality justice delivery, and the court we are inaugurating today definitely meets the standards of utility and modernity; it also addresses our quest to deal with the lack and the distressingly poor state of our physical infrastructure which have over the years militate against the effective operation of the courts generally, and rendered our services to the people of Ghana sometimes ineffectual.”

He thanked the Kwahu chiefs for their support and advice, and further called on all the people of Kwahu to come together to create a safe and prosperous future for Kwahu, since only by working together could they overcome the challenges that stand in the way of development.

Nana Boamah Ayiripe III, who was glad with the project, said Nana Owiredu Wadie I, over the years, had championed development in the Kwahu area, and Ghana as a whole, therefore, he needed to be commended for his immense contribution.

He finally re-echoed the position of the Adontenghene that the Circuit Court be converted to a High Court in due time for them.

Approved budgets for Ministries should be released on time -Babgin

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Speaker of Parliament, Rt. Hon. Alban Bagbin

The Speaker of Parliament, Mr. Alban Sumana Kingsford Bagbin, has cautioned the Ministry of Finance to desist from the habit of not releasing the full amounts of budgets that are approved for the Ministries, Departments and Agencies (MDAs).

“I think that we should take this as the last occasion where we will tolerate it from the Ministry of Finance. We don’t want to have this again. What is done cannot be undone. 2022 is past and gone. In 2023, this is [a] clear notice to the Ministry; we do not want this to be repeated again,” he said.

The comments came when the House was considering an amount of GH¢3.7 billion as budget estimates for the Ministry of Defense to undertake its activities in the year 2023.

The Speaker said he had observed from the Committee for Defense and Interior’s report presented to the House that 81% of the budget on goods and services requested by the Ministry in the 2022 Budget was not released.

He also said he had observed from the 2023 Budget that there had been an increase in compensation, but goods and services and CAPEX had been reduced. “So, you are employing people and you are not going to give them the tools to work with.

Look at the budget for 2023, it has been reduced, both for goods and services and CAPEX. So, you are going to recruit them, employ many hands and let them sit in their houses, meanwhile you know what is happening. I think there has to be a second look.”

Before these observations by the Speaker, the Member of Parliament (MP) for South Dayi, Mr. Rockson Nelson Dafeamekpor, who also commented on the report, said he observed that the Ministry could not get all the monies it asked for. He said the Ministry got only 89 million out of 141.7 million it requested for.

The MP lamented that shortfall release had become something very common with the Ministry of Finance, and questioned how the Ministry expects the Army to work well if it was not given the money it required to work effectively.

He said the Finance Ministry could toil with things such as accommodation of officers, but budgetary allocation should not be toyed with.

He called on the House to stop appealing to the Finance Ministry to release funds, and rather demand them to do so, because the tax they collect was so the Ministries could be well funded and equipped to do their work.

Calling on the House to desist from shortfall releases, Speaker Bagbin said that issues of safety, security and stability were things that must not be toyed with. He said there were a lot of issues of insecurities in the sub-region, and that the Finance Minister was aware, and that he could not comprehend the reluctance in the release of funds.

He, therefore, agreed with earlier calls made by the South Dayi MP that Parliament should not appeal to the Ministry to release funds again, but rather instruct them to do the needful.

“…It is not for this House to continue to be appealing to the Ministry to release funds. We are in charge. We pass the laws on taxation; they are to implement [it] so if they are failing to do it, we have to take them on. We should not be appealing to them.”

Speaker Bagbin admonished that the government should take security serious, even as it continuous to enjoy peace and safety from God.

I Love Criticisms … It helps shape my work -Prez

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MAXWELL OFORI
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President Akufo-Addo addressing a delegation from the International Organisational Development Association at a meeting at Jubilee House
President Akufo-Addo (middle) in a photograph with a delegation from the International Organisational Development Association at a meeting at Jubilee House

The President, Nana Addo Dankwa Akufo-Addo, has indicated that though he is an object of criticisms in Ghana, the same helps him to reflect.

He said criticism brings different perspectives to him about his work.

According to the President, criticism is an important ingredient in the life of public service, as it enhances output.

President Akufo-Addo was addressing a delegation from the International Organisational Development Association (IODA) which paid him a courtesy call at Jubilee House yesterday.

IODA is an international association of professionals, academicians and students engaged in work that helps organisations and communities to be healthier and more effective.

While congratulating the members of the Association for the work they do, President Akufo-Addo also acknowledged the difficulties public sector workers go through, and would not tend to join in the criticisms.

“But, nevertheless, criticism is an important part of the enhancement of everybody’s job. I am the main object of criticism in Ghana, and it helps me, because it brings different perspectives to me, and it allows me to reflect about the work I am doing.”

He encouraged them to continue with the work they do, assuring them that the government would play its part to support them.

The President spoke well about the work of the IODA, indicating that it was needed in the public service sector.

Introducing the delegation to the President, the Head of Civil Service said it was a group of worthy practitioners with the idea of bringing a new way of doing things across the nation.

He said the IODA, after a long while, had a Ghanaian as the head, in the person of Professor Noble Kumawu.

He said the approach for Organisational Development (OD) was to get organisations to identify their own challenges, own up and address them.

He recalled that in the past, OD experts were brought from outside of the country for such purposes, but did not help after the experts left.

The new head, Professor Noble Kumawu, was excited to sit in front of the President, stating that he did not “know if he would be able to sleep.”

He said that Ghana had been recognised at a good level for its own to be chosen to lead the international group, which operates in about 50 countries, including the United States.

Explaining the brain behind OD, Mr. Kumawu remarked that it facilitates organization’s ability “to reflect, self-regulate and take control of its own processes of improvement and learning with a view to effectively achieving its reasons for existing.”

He said their work is to engage clients to arrive at a suitable solution.

Editorial:  Akufo-Addo hit the nail right on the head

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THE CHRONICLE
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Editorial

The President, Nana Addo Dankwa Akufo-Addo, according to a front page story we carried yesterday has made a clarion call to manufacturers, traders and transport operators to reduce their prices.

He made the appeal on the basis that at the height of the cedi’s recent depreciation, manufacturers and transport operators increased the prices of goods and services.

Therefore, he deemed it fair for a reduction now that the cedi is re-gaining much of its strength.

According to the President, he was only adding his voice to calls that had already been made by the Ghana Union of Trades, the Ghana Road Transport Coordinating Council (GRTCC) and ordinary Ghana.

“I believe this is not only a fair request, but also a just one, and I urge all of you to join me in this clarion call, so we can all have a more pleasant Christmas,” he said. He made the appeal on Sunday, December 18, 2022 at the Ga Presbytery of the Presbyterian Church of Ghana’s centennial celebration in Accra.

Though many will argue that it was his administration that oversaw the rapid depreciation of the cedi and subsequent rise in goods and services, we still believe his call is in the right direction.

Over the past few days, the cedi is fast appreciating against the major world currencies, especially the US dollar. As a result of this development, prices of petroleum products keep dropping at the pumps. As a matter of fact, fuel prices have tumbled from GH¢22.00 to a little over GH¢15.00 currently.

The Chronicle is, therefore, happy that the various transport unions have reduced their lorry fares to reflect the new fuel prices. Since fuel is the driver of the economy, prices of all goods and services should also follow suit.

Because of high fuel prices, prices of food items especially hit the roofs, forcing the ministry of Agriculture to intervene by transporting food from the hinterlands to the urban centres and sold at relatively cheaper prices to consumers.

Now that the transport fares have gone down, The Chronicle expects our market women to also reduce the prices of these food items for every Ghanaian to enjoy the rapid appreciation of the cedi against the dollar.

The Chronicle, however, agrees that prices of imported items cannot come down overnight, since some of these items were imported at the peak of the Cedi depreciation and they must be sold by the importers to recover their investments.

The Chronicle, nevertheless, expects these importers to be honest and reduce their prices when they finish selling the old stock. We believe this is what the president was also referring to, hence our support for his call.

Dozens killed as Nigerian military plane bombs Zamfara community

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Military plane

At least 64 people were reportedly killed in an airstrike by a Nigerian military plane on Sunday at Mutumji Community in Maru Local Government Area of Zamfara State.

Residents told PREMIUM TIMES that many of those killed were armed militants while others were civilian residents of the community.

The victims, including women and children, were killed when a plane bombed the community while chasing fleeing bandits who reportedly invaded the town.

On Saturday and Sunday, the Nigerian Air Force responded to distress calls from locals following armed bandits’ attack on Malele, Ruwan Tofa, and Yan-Awake communities in the area.

Residents said the attack on the three neighbouring communities was adequately foiled by the air raids which forced the rampaging gunmen to flee into the neighbouring Mutumji community for safety.

A resident, Nuhu Dansadau, however, said the strikes by the air force on Mutumji affected several locals killing at least 64 people and injuring 12 others.

Mr Dansadau, who is a member of the International Human Rights, Crime Control and Conflict Resolution, said the injured victims were being conveyed to Gusau, Zamfara State capital for medical attention on Monday morning.

Also, a traditional leader in Mutumji, Abdulkadir Abdullahi, told PREMIUM TIMES that the incident was devastating as the corpses of the deceased persons were still being collected.

Credit: premiumtimesng.com

Court jails Peter Obi’s campaign chief for money laundering

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Peter Obi’s campaign chief, Doyin Okupe

The Federal High Court in Abuja, on Monday, jailed Doyin Okupe, for two years with an option of fine.

The court jailed Mr Okupe, who is the director-general of Peter Obi’s Labour (LP) presidential campaign council, for money laundering offences.

He was also a Senior Special Assistant (SSA) on Media to former President Goodluck Jonathan.

Delivering the judgment on Monday, the judge, Ijeoma Ojukwu, held that Mr Okupe was guilty of contravening sections 16(1) and (2) of the Money Laundering Act, for receiving cash payments without going through a bank, in excess of the threshold statutorily allowed.

Mr Okupe was found guilty on a total of 26 counts – from counts 34 to 59 of the charges.

The judge sentenced Mr Okupe to two years in prison on count 34 with an option of a fine of N500,000.

The court also sentenced him to two years imprisonment on counts 35 to 59 with an option of a fine of N500,000. The option of fine is to run consecutively on each count while the sentence is to run concurrently.

The judge refrained from making any custodial order but said the convict is the property of the state. Ms Ojukwu gave Mr Okupe till 4:30 p.m. before being taken into custody.

Credit: premiumtimesng.com

NSCDC deploys 1, 050 personnel for Xmas and New Year celebrations

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NSCDC personnel

The Nigeria Security and Civil Defence Corps (NSCDC), Jigawa State Command, has deployed 1, 050 personnel for the protection of lives and properties of citizens during Christmas and New Year celebrations in the state.

NSCDC State Commandant, Musa Alhaji Mala stated this in a statement issued to newsmen in Dutse.

He said the personnel were mobilized across the 27 local government areas in the state with emphasis on strategic places such as worship and recreational centres, government installations, motor parks, markets, malls, and other vulnerable spots.

The commandant, however, urged residents to be vigilant, and security-conscious and report any suspicious movements to the nearest security formation.

He advised parents to control and monitor the activities of their wards, especially the use of knockouts, underaged and reckless driving as such acts endanger their lives and that of innocent members of the public.

NSCDC, therefore, urged citizens to always be cautious and report any suspected movement to security agencies.

Credit: dailypost.ng

Drug trafficking: NDLEA threatens difficult time for barons

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Chairman of NDLEA, Brig Gen Mohamed Buba Marwa (retd)

The National Drug Law Enforcement Agency, NDLEA, said it will intensify its fight against illicit drugs, saying harder times await anyone caught in the battle.

Secretary of the agency, Mr Shadrach Haruna, who represented the Chairman of the agency, Brig. Gen. Mohamed Buba Marwa (retd) assured that NDLEA would go after anyone who peddles drugs, who he described as a ‘merchant of death.’

He spoke on the sidelines of the 3rd Annual Lecture Series on Drugs organised by the leadership of the National Assembly and the National Association of Nigerian Drug Monitoring (NANDRUM), in Abuja where they commended NDLEA for the fight against the drug menace in the country.

Haruna acknowledged the challenges of tackling drug trafficking but said the battle would be further intensified even as drug trafficking act as a catalyst to terrorism, banditry and other forms of criminalities.

“We all know that drug abuse has been a challenge in this country and it’s a scourge to many homes. We have seen an increase in banditry, terrorism and all manner of violent crimes and societal vices in the country, and they are associated with drug and substance abuse. What NDLEA is committed to doing is to free Nigeria and Nigerians from the problems of drug and substance abuse,” he said.

Reacting to questions on the involvement of privileged persons in society in drug peddling, the NDLEA Secretary explained that “they are the cartels that have been the focus of arrest by NDLEA in recent times.”

He said: “The elite are the drug barons and drug cartels, and if you follow the news recently, you will discover that NDLEA has about twenty drug barons in their net.”

He stated that several drug barons have been arrested, prosecuted and imprisoned with their properties forfeited.

“They have a lot of property and so many chieftaincy titles in the society but we don’t give a damn because if you have committed a crime, you have to answer for it. And many of them are going down,” he said.

Credit: dailypost.ng

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