BoG Governor confident of buoyant economy by year end

The Governor of the Bank of Ghana, Dr. Ernest Addison is confident that the country’s economic growth will pick up by year end.

Despite the Finance Minister revising the country’s GDP growth to 0.9 percent, the Governor believes the country was likely to exceed this revised target.

He was speaking at the 95th Monetary Policy Committee press conference in Accra. Although the country’s debt was rising (GH¢258 billion), he said when invested in the right sectors, this could stimulate economic growth.

Receiver’s dealings with collapsed financial institutions

The BoG Governor in a similar vein also disclosed that the receiver appointed to liquidate some of the commercial banks and has been able to gather ¢2 billion.

He further noted that with regard to payment, more than 96 per cent of the customers of the defunct Savings and Loans and Microfinance institutions have been paid. He added that 20 percent of the funds were paid in cash with 80 percent being paid through bond issues.

Mr. Charles Adu Boahen, the Deputy Minister of Finance of Ghana, had earlier stated that depositor funds locked up during the financial sector clean-up had been paid back to customers.

According to him, an estimated 96 percent of depositors had received their deposits. His assertions were however discredited by some sections of the minority and stakeholders who rubbished the claim.

Dr. Addison was, however, confident that the remaining funds would be paid soon. 

Ghana cedi and half year performance

Despite the Ghana cedi witnessing some pressure in recent times, the Governor has assured having the adequate reserves to support the local currency. He indicated the prognosis is also based on the export earnings also picking up strongly.

He worriedly expressed his sentiments about the recent payments and outflows, adding “We have received a lot of resources in the first half of this year, however, the outflows have also been very significant”.

The Governor argued that when you look at outstanding payments of non-resident outstanding bonds and this is really a question of net inflows.

BoG policy remains at 14.5% due to growth concerns

The Monetary Policy Committee of the Bank of Ghana on July 27,  kept its policy rate unchanged at 14.5 per cent.

Speaking at a virtual Monetary Policy Committee (MPC) Meeting Press Conference, Governor of the central bank, Ernest Addison, said this was due to growth concerns.

He noted that the BoG still needs more time to look at the impact of current development on reserves and the banking sector.

“Policy and regulatory measures announced by the MPC in March and May have positioned the banking sector to withstand the shocks associated with the pandemic and to support businesses. These measures are working their way through the economy, and are beginning to impact positively. So far, new advances for the first half of 2020 was estimated at GH¢15.8 billion compared to GH¢12.1 billion the same period of last year. The central bank will continue to engage the banking industry to provide the necessary support in these challenging times”.