Weekly Wrap: Oil prices fall, BoG to cut monetary policy rate and more

Weekly Wrap: Oil prices fall, BoG to cut monetary policy rate and more

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COVID-19: World Bank freezes $500 million debt Ghana owes for 2020:

The World Bank has frozen repayment of a $500 million Ghana owes, as well as interest accrued on it, for the rest of year 2020.

As part of his seventh update to Ghanaians on Ghana’s plan of action in combating the coronavirus, President Akufo-Addo revealed that the move forms part of a broader pan-African effort for debt relief.

He explained that this is due to the negative impact of the coronavirus on economies in Africa.

According to the president, African finance ministers, led by Ken Ofori-Atta of Ghana and his South African counterpart, achieved a nine-month debt standstill from the World Bank.

READ ALSO: COVID-19: Akufo-Addo calls for debt standstill for Africa

Rating agency downgrades Ghana’s economy to negative but affirms B3 rating:

YEN.com.gh has learned that Moody’s, an international rating agency, has downgraded Ghana’s economic outlook from positive to negative.

The firm, however, maintained the country’s long-term local and foreign currency issuer and foreign currency senior unsecured bond ratings at B3.

Information available shows that the outbreak of the coronavirus is a key reason for the downgrade.

COVID-19: Bank of Ghana bans all banks and SDIs from declaring dividends to shareholders:

The Bank of Ghana (BoG) has suspended the payment of dividends by banks and Special Deposit Institutions for the 2019/2020 financial year.

The instruction comes at a time when Ghana is combating the coronavirus which has adversely affected the financial sector.

Shareholders of the stated institutions are therefore not expected to receive dividends for the period in question.

A press statement released by the BoG to that effect also indicated that banks and SDIs are not expected to make any irrevocable commitments regarding dividends until further instructions are given.

COVID-19: Oil price falls by 305%; now -$36.73 per barrel:

Oil prices in the United States of America (USA) dropped by a historic 305% and now sells at -$36.73 per barrel.

The historic fall on Monday, April 20, 2020, saw traders unloading positions ahead of the May contract’s expiration on Tuesday, April 21, 2020.

YEN.com.gh understands that presently, buyers are being paid to take delivery as there are cost associated with transportation and storage.


BoG to further cut monetary policy rate from coronavirus impact – EIU predicts

The Economist Intelligence Unit (EIU) is predicting a further cut in the central bank's near-term monetary policy rate due to the impact of the Coronavirus pandemic.

According to the UK-based firm's latest country report on Ghana; “With economic activity set to weaken sharply over the coming months, further near-term monetary policy easing is therefore possible.”

GRIDCo and Sunon Asogli build $5.4m Auto Transformer to boost power supply

The Energy Minister, John Peter Amewu, has commissioned a 330/161 KV interconnecting Auto Transformer at Sunon Asogli Power Plant in Tema boost power transmission and supply in the country.

The interconnecting transformer which was built by the Ghana Grid Company Limited Ghana Limited and Asogli cost 5.4 million dollars.

The Ghana Grid Company (GRIDCo) invested $3.3 million, whiles Sunon Asogli, put in $2 million.

READ ALSO: COVID-19 is no excuse to avoid paying taxes - GRA warns Ghanaians

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