Bank of Ghana to support government with ¢10 billion amid Covid- 19
The Bank of Ghana (BoG) says it stands ready to support government with GH¢10 billion in the wake of the coronavirus pandemic.
Addressing the media Friday, Governor of the Bank of Ghana, Dr Ernest Addison said “Today, under the Bank of Ghana’s Asset Purchase Programme, the Bank has purchased a Government of Ghana COVID-19 relief bond with a face value of GH¢5.5 billion at the Monetary Policy Rate with a 10-year tenor and a moratorium of two (2) years (principal and interest)."
Dr Addison added, “The Bank stands ready to continue with its Asset Purchase Programme up to GH¢10 billion in line with the current estimates of the financing gap from the Covid-19 pandemic.”
The Covid-19 pandemic has put a severe strain on the budget, manifesting in petroleum revenue shortfalls as a result of plunging crude oil prices, shortfalls in import duties, other tax revenues, and non-tax revenues.
Financing gap widens
He said, “Preliminary assessments show that the financing gap that was estimated at the time of applying for the IMF RCF in March has widened significantly, resulting in a large residual financing gap.
“Current market conditions in the wake of the pandemic, will not allow the financing of the gap from the domestic debt capital markets without significantly increasing interest rates.”
“Under the circumstances and in line with section 30 of the Bank of Ghana Act, 2002 (Act 612) as amended, the Bank of Ghana has triggered the emergency financing provisions, which permits the Bank to increase the limit of BOG’s purchases of government securities in the event of any emergency to help finance the residual financing gap,” Dr Addison said.
Latest Stories
-
Bahamas World Relays: Ghana paired with world and Olympic champions in Heat 1
4 hours -
Bahamas 2024 Relays: Star-studded cast ready to put on pre-Paris show
5 hours -
Bahamas Relays preview: clash of global title-winning teams in men’s 4x100m
5 hours -
Arsenal keeper Raya wins Premier League Golden Glove
5 hours -
Iñaki Williams scores twice in Athletic Bilbao’s win over Getafe
5 hours -
Argument with Salah ‘completely resolved’ – Klopp
6 hours -
Reus to leave Dortmund at the end of the season
6 hours -
Uefa confirms 26-man squads for Euro 2024
6 hours -
Teacher Unions press home demands for the new allowances
6 hours -
Media’s failure to hold government accountable for ‘galamsey’ alarming – Mahama
6 hours -
Keta Presbytery urges Akufo-Addo to assent to anti-LGBTQ+ Bill
6 hours -
Ghanaian midfielder Lawrence Ofori nets maiden goal of the season with stunner against Vizela
6 hours -
Community fearful after off-duty policemen shot dead at East Trasacco
6 hours -
Dext Technology partners KNUST to train basic school teachers on STEM
7 hours -
My efforts led to remarkable transformation in Appiatse – Lands Minister
7 hours