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Finance

I engaged in prudent financial management as Finance Minister

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Former Finance Minister, Ken Ofori-Atta says he committed himself to the prudent management of the strategic resource allocated to him during his tenure in office.

This according to him was aimed at bolstering economic growth, enhancing social welfare, and facilitating infrastructural development.

In a heartfelt letter of appreciation issued on Wednesday, February 14, and sighted by Myjoyonline.com, Mr. Ofori-Atta underscored the objective of safeguarding the most vulnerable segments of society through initiatives implemented.

He noted that as a result of these efforts, the nation has witnessed significant progress, contributing to an improved quality of life for Ghanaians.

“We reminded ourselves that we had only two fishes and five loaves for the monumental task ahead while ensuring a deliberateness of the preferential options for the poor and promoting private sector productivity. Since March 2020, our four (4) Budgets however, have focused on protecting lives, preserving livelihoods and recovering from the impact of the, that truly once-in-a- lifetime apocalyptic pandemic, COVID-19, as well as geopolitical upheavals. Indeed, amidst these poly-crises, we at MoF stood strong as the Midwives of the Republic to help ease the pain on our Fellow Citizens.

“Through prudent financial management and strategic allocation of resources, we have pursued initiatives aimed at boosting economic growth, promoting social welfare, and expanding infrastructural development. As a result of these efforts, our country has experienced remarkable progress.”

Meanwhile, he has expressed confidence in his successor, Dr. Mohammed Amin Adam, urging the Ministry of Finance staff to support him in his new role.

Mr Ofori-Atta also thanked the staff for their tireless service and commitment to excellence during his tenure.

He encouraged them to uphold professionalism, ethics, efficiency, and responsiveness, emphasising his vision for a Ghana Beyond Aid.

Describing Dr. Amin Adam as a smart, humble, and inclusive leader, Ofori-Atta stressed the importance of collective effort to ensure a successful tenure for the new appointee.

“The future is here with us as we are blessed with a new leader, Dr Mohammed Amin Adam, who replaced the venerable Charles Adu Boahen and has been with us through some of the most difficult times. Let us all circle the wagons and ensure a blazing success for his stewardship.

“We all know him as a smart, humble and inclusive leader. Let me state with all humility that nothing would honour me and the ‘Office of the Minister’ more than for you to work with renewed diligence to guide Hon. Amin and our nation to the successful execution of the IMF-ECF programme to promote economic growth and transformation.

“Once again, I thank you for your tireless service and commitment to excellence. It has been my utmost honour and a rare privilege to serve alongside each, and every one of you. I pray that you continue to be resolute, dedicated, unwavering and committed to the work of the Republic and care for the finances of the State.”

President Akufo-Addo on Wednesday, February 14, appointed Dr. Mohammed Amin Adam as the new Finance Minister, replacing Ken Ofori-Atta, who served in the position for seven years.

The announcement came as part of the latest ministerial reshuffle released by President Akufo-Addo on February 14.

Despite facing significant challenges and calls for his dismissal from some members of Ghana’s Parliament, Ken Ofori-Atta served as Ghana’s longest-serving finance minister.

On October 25, 2022, around 80 NPP MPs demanded Ofori-Atta’s resignation due to the country’s struggling economy. Similar calls were echoed by the NDC parliamentary caucus in February 2023.

However, President Akufo-Addo rejected these calls for resignation, urging Parliament to wait until discussions with the IMF were concluded.

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Finance

Transfer GH¢181m to beneficiaries of Responsiveness Factor Grant

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Finance Minister Mohammed Amin Adam has urged the Office of the District Assemblies Common Fund (DACF) to promptly transfer the allocated GH¢181,837,022.00 to the beneficiaries of the DACF-Responsiveness Factor Grant (RFG) for the District Performance Assessment Tool (DPAT) VI.

He expressed concern that the ongoing delays in transferring the funds to the Metropolitan Municipal District Assemblies (MMDAs) could undermine the government’s commitment to bilateral cooperation agreements and pose a significant risk to the Ministry’s objective of mobilising resources to support local development through decentralisation.

In a statement dated February 27, 2024, Mr Adam emphasised the importance of these potential grant funds as the country navigates an International Monetary Fund (IMF) programme of fiscal consolidation and economic recovery.

Mr Adam clarified that the Ministry received a letter dated December 12, 2023, from the Ministry of Local Government, Decentralisation and Rural Development (MLGDRD), requesting the DACF Office to transfer GH¢181,837,022.00; GH¢170,142,722.00 to the Sub-consolidated accounts of the MMDAs and GH¢11,694,300 to the DPAT Secretariat for DPAT VI activities.

He expressed concern that these funds have not yet been received by the beneficiaries, hindering the progress and effective operations of the MMDAs.

Mr Adam stated that the prerequisite for Development Partners (DPs) committing funds to the DACF-RFG was the transfer of funds intended for the previous DPAT cycle (both GoG and DP contributions) to the MMDAs for their planned activities.

He noted that the ministry had received concerns from its development partners about the delayed transfer of funds to MMDAs, which threatens current and future DP support to the DACF-RFG.

For instance, the Finance Minister pointed out that the Swiss Government was hesitant to execute a new grant financing agreement of CHF22million, including CHF6million for DPAT VII activities in 2024, because the CHF4million disbursed in December 2022, along with the corresponding Government of Ghana (GoG) contribution for DPAT VI activities in 2023, had not been transferred to the MMDAs.

READ THE FULL STATEMENT FROM THE MoF HERE

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Finance

T-bills auction: Interest rates fall to 26.7%; government gets GH¢4.83bn

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Interest rates fell for 10 consecutive weeks, as demand for treasury bills continued to remain high despite the upside risks.

As predicted by many analysts, interest rates plummeted to reflect the lower inflation.

The yield on the 91-day bill fell by 25 basis points to 26.74%.

That of the 182-day also eased to 29.24% from 29.49% the previous week.

Similarly, the 364-day bill went down by 16 basis points to 29.84%.

Meanwhile, the government accepted all the bids tendered to the tune of GH¢4.83 billion. This is about 12% oversubscription.

For the 91-day bill, about GH¢2.72 billion were tendered, representing 56.3% of the total bids. The uptake was also GH¢2.72 billion.

For the 182-day bill, all the GH¢919.40 million of the bids were accepted.

The same applies to the 364-day bill in which all the GH¢1.18 billion were accepted.

Yields fell sharply in February 2024

Yields fell sharply in February 2024 as the strong money market liquidity outweighed any upside risk from the unexpected uptick in the January 2024 inflation.

The 91-day yield trimmed 131 basis points month-on-month to 27.3%.

The 182-day went down by 135 basis points to 29.8%, while the 364-day yield fell by 150 basis points to 30.3%.

SECURITIESBIDS TENDERED (GH¢)BIDS ACCEPTED (GH¢)
91 Day Bill    2.721bn2.721bn
182 Day Bill919.40m        919.40m        
364 Day Bill1.189bn1.189bn
   
Total4.830bn4.830bn
Target4.285bn4.285bn

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Finance

T-bills auction: Interest rates fall for 9th consecutive week to 26.9%; government records 19% oversubscription

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Interest rates fell for the 9th consecutive week running in line with analysts’ forecasts.

According to the auction results by the Bank of Ghana, the 91-day T-bill eased by 83 basis to 26.99%.

Similarly, the 182-day bill also went down to 29.49% from the previous 29.74%.

Again, the 364-day bill declined by 29 basis points to 30.0%.

Based on the happenings since the beginning of the year, the rates are expected to go down further this week.

Meanwhile, the government recorded about 19.9% percent oversubscription of the treasury bills auction, as demand for the short-term instruments remained high.

The total bids tendered by the investors were estimated at GH¢4.963 billion. The uptake was estimated at GH¢4.940 billion.

Chunk of the bids this time around came from the 6-month bill. The uptake was GH¢1.843 billion.

It was followed by the 91-day bill in which GH¢1.833 billion of the bids were tendered. All were accepted.

About GH¢1.263 billion of the bids came from the 364-day bill. Once more, all the bids were accepted.

SECURITIESBIDS TENDERED (GH¢)BIDS ACCEPTED (GH¢)
91 Day Bill1.833 billion1.833 billion
182 Day Bill1.866 billion1.843 billion
364 Day Bill1.263 billion1.263 billion
Total4.963 billion4.940 billion
Target4.137 billion 
   
   

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