Nigeria's biggest bank by market value, Guaranty Trust (GT) Holding Company, will slowdown lending and bond trading in Ghana, following a $77 million loss.
According to Bloomberg, GT will rather focus on activities in Nigeria and other high-yielding African markets to boost lending by 15% in 2023.
It will therefore expand credit by not more than 5% in Ghana and limit itself to treasury bills for securities investments.
Chief Executive Officer (CEO), Segun Agbaje, said the harsh operating environment and high inflation rate in Ghana makes it difficult for businesses to make money and pay back loans.
Ghana’s debt crisis puts pressure on banks
Ghana is currently restructuring most of its public debt, causing losses for financial institutions.
The bank is facing a tough time in its second-biggest market, Ghana, due to the country's restructuring of most of its public debt worth $49 billion.
Ghana exchanged notes worth ¢87.8 billion that paid an average of 19%, with bonds returning as little as 8.35%, causing losses for financial institutions. Most foreign creditors are still in talks with the authorities regarding the issue.
The bank had 167.6 billion naira of debt securities in Ghana, while rival lender Zenith Bank set aside 123.4 billion naira to account for the restructuring.
Latest Stories
-
Medical Laboratory Professionals threaten to strike over conditions of service
2 hours -
Residents of Anloga, Keta express frustration over ECG billing
2 hours -
I don’t believe in praying in tongues – Strongman
2 hours -
‘After The floods’: VRA and GMet clash over cause of Akosombo Dam spillage disaster
3 hours -
‘After The Floods’: Victims suffer harsh conditions 6 months after Akosombo dam disaster
3 hours -
Akufo-Addo to unveil Otumfuo commemorative stamp
3 hours -
EduSpots distributes over 100 tablets and laptops to 30 community-led education spaces
3 hours -
Taxation is driving away investors – FABAG General Secretary
4 hours -
Effutu MP commissions office for Hepatitis B; absorbs cost of testing, vaccination and management
4 hours -
Bawumia pushes for land digitisation to tackle land guard menace
4 hours -
Faith-based institutions are instrumental in national development – Bawumia
4 hours -
Upholding the Integrity of Presidential Promises: A call to Ghanaian leaders
4 hours -
I don’t start ‘beefs’; I only reply – Strongman refutes claims
5 hours -
Vice President Bawumia promises reforms to turn Ghana’s fortunes around
5 hours -
REGSEC warns encroachers along Tema-Sakumono Ramsar site as it races to prevent flooding
5 hours