• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

BoG monitoring liquidity pressures on banks after debt exchange programme

3 years ago
in Banking & Finance, Business, Economy, Editor's pick, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
112
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

BoG monitoring liquidity pressures on banks after debt exchange programme

Ghana’s financial sector is facing significant headwinds from the ongoing economic challenges that have emerged in the country, leading to a spillover effect on banks. The Bank of Ghana (BoG) has reiterated that it is closely monitoring some developments among banks due to the Domestic Debt Exchange program, which is increasing liquidity pressures.

The Domestic Debt Exchange program was introduced by the government to help reduce its high debt levels and interest payments. The program involves the exchange of short-term high-interest treasury bills for longer-term lower-interest bonds, which has led to a liquidity squeeze among banks.

The liquidity squeeze has increased pressure on the balance sheets of banks and consequently averted the probability of insolvency. The BoG has stated that it is closely monitoring these developments to prevent any adverse effects on the financial sector.

Speaking on behalf of the Governor at the Induction Ceremony of the Ghana Association of Restructuring and Insolvency Advisors, Elliot Amoako, Head of the Resolution Office, said that the macro-prudential risk assessment of the banking sector indicates the emergence of spill-over effects from the current economic challenges on the banking industry.

The spill-over effects have increased the pressures on the solvency and liquidity of banks. Mr. Amoako appealed to insolvency practitioners to support the regulator in making the financial sector stable.

The BoG has already put in place regulatory relief measures to moderate the potential impact of the Domestic Debt Exchange program and ensure stability in the sector. However, Mr. Amoako said that close monitoring is required to avert insolvency in some institutions.

RelatedPosts

Communications Minister Threatens to Revoke Multichoice Licence by September 6

Ghana Cedi’s World-Beating Performance Upended by Imports Surge

Your Savings as Your Launchpad for a Better Financial Future

The Association of Restructuring and Insolvency Advisors is made up of professionals with an interest in restructuring and insolvency formed in 2006 to play a leadership role in corporate restructuring, business recovery, and insolvency in Ghana.

The BoG’s macro-prudential risk assessment of the banking sector indicates that pressures on solvency and liquidity of banks have increased, and the regulator is closely monitoring these developments. The Bank is working on regulatory relief measures to moderate the potential impact of the Domestic Debt Exchange program, which is expected to provide much-needed support to banks.

The BoG’s intervention is timely, given that the government’s expansionary spending plans will result in a rising public debt-to-Gross Domestic Product (GDP) ratio. The public debt-to-GDP ratio is expected to continue on an upward trajectory until 2028, after which it will start to moderate. This underscores the importance of the BoG’s regulatory relief measures to ensure stability in the sector.

The Domestic Debt Exchange program is causing liquidity pressures on the banking sector, which is raising concerns about the solvency of banks. The BoG is closely monitoring these developments and has put in place regulatory relief measures to ensure stability in the sector. It is essential that the BoG continues to monitor the situation closely and take appropriate measures to mitigate any adverse effects on the financial sector. The Association of Restructuring and Insolvency Advisors has a critical role to play in supporting the BoG in making the financial sector stable.

Tags: BOGBoG monitoring liquidity pressures on banks after debt exchange programmeDebt Exchange ProgrammeLiquidity pressures
No Result
View All Result

Highlights

US Open: Alcaraz and Djokovic set up Blockbuster Semi-final

Deloitte: Premier League Clubs Exceed £3 Billion in Record Summer Spending

The Race to FIFA World Cup 2026: Who’s In, Who’s Close, Who’s Dreaming?

BoG Ups FX Forward Auction to $208m Amid Cedi Pressures

Headline Inflation Falls to 11.5% in August, Beating Gov’t’s 11.9% End-Year Target

GNCCI Urges Government to Stabilise Exchange Rate to Safeguard Growth

Trending

Features

Communications Minister Threatens to Revoke Multichoice Licence by September 6

September 3, 2025

Communications Minister Threatens to Revoke Multichoice Licence by September 6 The Minister of Communications, Digital Technology and...

Ghana Cedi’s World-Beating Performance Upended by Imports Surge

September 3, 2025

Your Savings as Your Launchpad for a Better Financial Future

September 3, 2025

US Open: Alcaraz and Djokovic set up Blockbuster Semi-final

September 3, 2025

Deloitte: Premier League Clubs Exceed £3 Billion in Record Summer Spending

September 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.