{"id":226726,"date":"2025-10-26T16:04:20","date_gmt":"2025-10-26T16:04:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/226726\/"},"modified":"2025-10-26T16:04:20","modified_gmt":"2025-10-26T16:04:20","slug":"debt-restructuring-remains-a-key-fiscal-risk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/226726\/","title":{"rendered":"Debt restructuring remains a key fiscal risk"},"content":{"rendered":"

\"Dr <\/a>Dr Johnson Asiama is the BoG Governor<\/p>\n

Key fiscal risks likely to plague government\u2019s recovery efforts include weak revenue performance, pressure from compensation of employees and increasing energy sector payments.<\/p>\n

Captured vividly in the September 2025 Monetary Policy Report by the Bank of Ghana, the report said concluding the remaining external debt restructuring negotiations may create potential short-term external payment challenges.<\/p>\n

According to the central bank, this may have implications for the domestic currency.<\/p>\n

While the public debt profile has benefitted from the local currency\u2019s appreciation, recent depreciation may claw back some of the gains.<\/p>\n

Exchange rate management has been a pillar of the central bank\u2019s stabilisation strategy. The BoG maintains a flexible exchange rate framework but intervenes selectively to smooth volatility.<\/p>\n

Ghana secures $30m Chinese grant – President Mahama announces<\/a><\/p>\n

According to Dr. Asiama, market interventions are not intended to defend a specific rate but ensure orderly market conditions.<\/p>\n

For instance, between July and August 2025 several large, one-off external payments \u2013 including bond redemptions and arrears linked to the domestic debt exchange \u2013 required the central bank to provide temporary liquidity support.<\/p>\n

The cedi\u2019s over-21 percent year-to-date appreciation, coupled with improved liquidity, reflects the gains from this approach.<\/p>\n

To safeguard financial stability, the Bank of Ghana is reinforcing prudential oversight. The Capital Adequacy Ratio has risen to 17.7 percent while the industry\u2019s non-performing loans ratio has declined to 20.8 percent, still high but showing improvement.<\/p>\n

The next phase of Ghana\u2019s recovery depends on collaboration between the central bank, fiscal authorities and the banking sector.<\/p>\n

Sustaining exchange rate stability, expanding credit to productive sectors and strengthening FX sourcing requires what he describes as \u201cshared responsibility\u201d.<\/p>\n

Consequently, the central bank is urging banks to promote export-oriented financial products, support agribusiness and SMEs and comply with domestic insurance and regulatory requirements to reduce FX leakages.<\/p>\n

These measures, combined with transparent FX operations and disciplined liquidity management, form the basis of the country\u2019s post-crisis policy framework.<\/p>\n

Inflation control, through disciplined liquidity management and close fiscal coordination, has been the central theme of the Bank of Ghana\u2019s policy agenda.<\/p>\n

All you need to know about Ghana’s new vehicle number plates |BizTech:<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"Dr Johnson Asiama is the BoG Governor Key fiscal risks likely to plague government\u2019s recovery efforts include weak…\n","protected":false},"author":2,"featured_media":30149,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-226726","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/226726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=226726"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/226726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/30149"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=226726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=226726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=226726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}