Ghana to Announce New Bailout for Financial Sector Cleanup Victims by October 2024

by Louisa Afful
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The Finance Minister, Dr. Mohammed Amin Adam, announced that the government will provide another bailout for depositors who lost funds during the financial sector cleanup by October 2024.

In 2017, under Finance Minister Ken Ofori-Atta, the government reduced the number of banks from 34 to 23 and revoked the licenses of 347 microfinance institutions, 15 savings and loans, and eight finance houses, affecting many depositors.

Dr. Adam stated that while the government typically wouldn’t cover individual investment losses, the Akufo-Addo administration is stepping in to help those affected. “This caring government has already provided some bailouts and will release an additional ¢1.5 billion by October,” he announced at a UK Town Hall meeting on June 23, 2024.

He also shared that the government has successfully restructured $5.1 billion of debt with official creditors and $13.1 billion with Eurobond holders, saving the nation $8 billion. Ghana’s debt restructuring aims to reduce debt to 55% of GDP by 2028, down from 109%.

Dr. Adam highlighted that Ghana’s economy grew by 2.9% in 2023, better than the IMF’s 1.5% target, allowing for a revised debt sustainability assessment. The debt restructuring is part of an ongoing effort with the IMF to revamp Ghana’s economy.

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