• 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

Fear of regulatory backlash keeps banks silent on debt restructuring programme – Prof Gatsi

2 years ago
in Banking & Finance, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
136
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Fear of regulatory backlash keeps banks silent on debt restructuring programme – Prof Gatsi

In a recent discussion on NorvanReports’ Twitter Space Conversation, the Dean of the Business School at the University of Cape Coast (UCC), Professor John Gatsi, revealed that banks in Ghana are reluctant to voice concerns over the domestic debt restructuring programme.

According to Prof Gatsi, this reticence stems from fears of facing regulatory challenges that could arise from opposing the government’s initiatives.

“Banks are unwilling to talk against the domestic debt restructuring and more recently the restructuring of the cocoa bills because of the strong arm of the regulator which can come against them (sic),” he quipped speaking on the NorvanReports’ Twitter Space Conversation dubbed “DDEP 2 and Its Impact on the Cocoa Industry – How do we fund the Bills” on Sunday, July 9, 2023.

Speaking further on the topic, Prof Gatsi noted that, the success of the first phase of the DDEP has emboldened the Government to undertake a second phase of the DDEP, this time around targeting cocoa bills and local US dollar bonds.

The Government, in collaboration with certain banks in the country, recently reached an agreement to restructure cocoa bills worth GHS 8.1 billion. As part of this effort, the existing yield of 32% on the bills will be reduced to a new yield of 12% on bonds maturing between 2025 and 2029.

This restructuring forms a vital component of the government’s broader strategy to address the nation’s remaining total domestic debt amounting to GHS 123 billion. The debt includes cocoa bills, local dollar bonds, pension funds, and amounts owed to the Central Bank.

RelatedPosts

Value of Mobile Money Transactions Hit GHS 323.2bn in June

Alex Mould Questions BoG’s 25% Policy Rate Amid Ample Market Liquidity and Falling Inflation

Chamber of Agribusiness Calls for Sector-Wide Price Cuts and Urgent Government Support to Curb Food Crisis

The second phase of the domestic debt restructuring program (DDEP) aims to put the country on track to access the second tranche of $600 million from the $3 billion balance of payment support pledged by the International Monetary Fund (IMF) under Ghana’s new bailout program.

Meanwhile, recent reports indicate that local banks are exerting pressure on the government to secure more favorable terms for the restructuring of their cocoa debt holdings. The government is currently offering a 12% interest rate on five new bonds replacing existing cocoa bills with an average yield of 30%.

Banks view this reduction as excessively sharp, potentially eroding up to 40% of the face value of the bonds. Instead, they seek terms similar to those granted during the domestic debt exchange in February, where lenders suffered a maximum interest rate reduction of 10.7 percentage points.

While negotiations between banks and the government continue, the prevailing regulatory climate appears to be inhibiting banks from openly opposing the domestic debt restructuring program. The power wielded by the regulator has created an atmosphere of caution, prompting banks to tread carefully to avoid potential repercussions.

 

Tags: BanksBOGDDEPFear of regulatory backlash keeps banks silent on debt restructuring programme - Prof GatsiProf Gatsi
No Result
View All Result

Highlights

The Perils of Market Interventionism: When Political Pressures Threatens Ghana’s Economic Gains – The Way Forward

GAB Projects Drop in Lending Rates Starting August 6 Following BoG’s 300bps Policy Rate Cut

Local Bourse Rallies Strongly as GSE-CI Hits Near 7,000 Mark

Treasury Exceeds Auction Target of GHS 3.86 Billion Amid Tightening Yields

BoG Raises GHS 15.38 Billion via 56-Day Bills to Reinforce Tight Monetary Policy Stance

Passage of Competition Law Key to Tackling DSTV’s Market Dominance – CUTS International

Trending

Business

Value of Mobile Money Transactions Hit GHS 323.2bn in June

August 4, 2025

Value of Mobile Money Transactions Hit GHS 323.2bn in June The total value of mobile money transactions...

Alex Mould Questions BoG’s 25% Policy Rate Amid Ample Market Liquidity and Falling Inflation

August 4, 2025

Chamber of Agribusiness Calls for Sector-Wide Price Cuts and Urgent Government Support to Curb Food Crisis

August 4, 2025

The Perils of Market Interventionism: When Political Pressures Threatens Ghana’s Economic Gains – The Way Forward

August 4, 2025

GAB Projects Drop in Lending Rates Starting August 6 Following BoG’s 300bps Policy Rate Cut

August 4, 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.