• 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

BoG Governor speaks on economic challenges, resilience amidst crisis

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
83
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

BoG Governor speaks on economic challenges, resilience amidst crisis

Dr. Ernest Addison, the Governor of the Bank of Ghana, addressed the media today during a special press briefing, shedding light on the intricate challenges faced by the nation’s economy in 2022. He expounded on the critical junctures that led to an economic crisis and highlighted the Bank’s robust response to mitigate the impact.

A pivotal aspect of Dr. Addison’s address centered around the loss of access to the international capital market, which triggered an immediate liquidity crisis for the Government. This crisis then snowballed into a balance of payments predicament as Ghana grappled with honoring its debt service commitments, energy payments, and import bills. The Bank of Ghana found itself in the crosshairs, losing a staggering $500 million in external reserves within just two months, with no replenishment from the annual Eurobond issuance, a customary source of foreign currency inflow.

The root cause of this financial turmoil lay in the widening sovereign spreads on Ghana’s Eurobonds and a subsequent downgrade of the nation’s sovereign debt rating by Credit Rating Agencies. This effectively cut off Ghana’s access to the international capital markets, a lifeline upon which the budget heavily relied to secure approximately $3 billion annually, addressing its financing gap.

Governor Addison elucidated that this yearly borrowing was predominantly directed towards fulfilling debt service and energy payment obligations. These commitments had ballooned to a significant $3 to $4 billion annually by 2020, underscoring the financial strain the nation was grappling with.

Amidst these challenges, the Bank of Ghana took proactive measures to alleviate the liquidity crisis. It extended additional overdraft facilities to the government, preventing domestic default and ensuring the fulfillment of critical debt obligations. This strategic intervention played a pivotal role in averting a disorderly halt to economic activity.

The Governor went on to detail how these exigencies prompted the Government to seek assistance from the International Monetary Fund (IMF) in July 2022. An IMF Mission was promptly dispatched to assess the situation, ultimately concluding that the economy stood at a tipping point. In consensus with the IMF, it was agreed that the Bank of Ghana should provide the necessary support to maintain economic stability until a comprehensive reform program could be implemented, paving the way for IMF financing.

RelatedPosts

AGI Reports Improved Dollar Supply, Applauds Recent BoG FX Measures 

ECG Cancels Over 200 Contracts in Procurement Clean-Up

Harry Kane Makes History: Fastest to Reach 100 Goals for Bayern Munich

Dr. Addison emphasized that the Bank of Ghana’s ability to intervene effectively during these challenging times was a testament to the policy buffers it had painstakingly built over years of prudent management. This resilience underscored the Bank’s pivotal role as the lender of last resort, upholding the economy’s stability during a crisis. He further stressed the historical inevitability of economic crises as part of the business cycle and the pivotal role policy buffers play in providing the necessary space to manage such events.

In his closing remarks, Dr. Addison conveyed a message of reassurance, asserting that the Bank of Ghana remains poised to uphold its statutory mandate and contribute to rebuilding a resilient and inclusive post-pandemic economy.

Tags: BOGBoG Governor speaks on economic challengeseconomic challengesIMFresilience amidst crisisWorld Bank
No Result
View All Result

Highlights

Manchester United Unveils Plans for Canopy-Free Old Trafford Upgrade

Premier League: Hearts of Oak Edge Eleven Wonders to go top

Why Women Must Be Involved In Building Flood Resilience

African Development Bank Group and Michael Bloomberg to Drive Private Investment into Africa

Bitcoin Drops to $109K as Crypto Market Loses $200 Billion

AI in Africa: 5 Issues That Must be Tackled for Digital Equality

Trending

Features

AGI Reports Improved Dollar Supply, Applauds Recent BoG FX Measures 

September 27, 2025

AGI Reports Improved Dollar Supply, Applauds Recent BoG FX Measures  The Association of Ghana Industries (AGI) has...

ECG Cancels Over 200 Contracts in Procurement Clean-Up

September 27, 2025

Harry Kane Makes History: Fastest to Reach 100 Goals for Bayern Munich

September 27, 2025

Manchester United Unveils Plans for Canopy-Free Old Trafford Upgrade

September 27, 2025

Premier League: Hearts of Oak Edge Eleven Wonders to go top

September 27, 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.