Day: April 2, 2023

The cash reserve ratio is the percentage of deposits that banks must hold in reserve as cash, rather than lending it out.

By increasing the cash reserve ratio from 12% to 14%, the central bank is reducing the amount of funds that banks have available for lending, which will likely lead to higher interest rates and a reduction in credit availability.

This is because banks will now have to hold more cash in reserve, reducing the amount of money they can lend out to borrowers. As a result, businesses and individuals may find it harder to access credit – which can slow down economic growth.

Additionally, the policy rate increase from 28% to 29.5% means that banks will now charge higher interest rates on loans to their customers. This will increase the cost of borrowing, which will make it more difficult for borrowers to pay back their loans. This can result in defaults and loan losses for banks, leading to further liquidity pressures on the financial sector.

The overall effect of the central bank’s action in increasing the cash reserve ratio and policy rate is likely to be a worsening of the already challenging situation faced by banks and non-bank financial institutions in Ghana.

Firstly, the cash reserve ratio increase means that banks are required to hold a higher percentage of their deposits with the central bank. This reduces the amount of money banks have available to lend to customers, which can lead to a reduction in credit availability – particularly for businesses and individuals who are already struggling due to economic impacts from the debt restructuring programme.

Additionally, the cash reserve ratio increase can put further pressure on banks’ liquidity positions, as they may need to access additional funding to meet the new reserve requirements.

The difference between government’s Treasury bill rate at 19.5% and the policy rate at 29.5% is known as the spread, and it represents the additional cost to banks of borrowing from the central bank.

When the policy rate is higher than the Treasury bill rate, banks must pay a higher interest rate to borrow funds from the central bank. This means that banks must acquire deposits at the higher policy rate, which includes a margin, and place those funds in the cash reserve at the lower Treasury bill rate.

This creates a squeeze on banks’ margins, as they are earning a lower return on their cash reserves than the interest rate they are paying on deposits. This can lead to a reduction in banks’ profitability and liquidity, which can in turn affect their ability to lend to customers – and thus contribute to financial instability.

Secondly, the policy rate increase is likely to increase the cost of borrowing for businesses and individuals. This can lead to a decrease in demand for credit, as borrowers may find it more difficult to service their existing loans or may decide to delay taking out new loans. This could have negative consequences for economic growth, as businesses may struggle to access the financing they need to invest and expand.

Moreover, the combination of these two measures will put additional pressure on the profitability of banks and non-bank financial institutions. As the cost of borrowing increases, some customers may default on their loans, leading to higher levels of non-performing loans.

Additionally, the cash reserve ratio increase will reduce the amount of money banks have available to lend, potentially leading to a decline in their net interest margins. This can have a knock-on effect on their ability to attract and retain customers, as they may be forced to offer less attractive rates or services.

In effect, the high cost of borrowing can also discourage customers from taking out loans, which can have negative effects on economic growth and development. Therefore, it is essential that policymakers balance the need to control inflation with the need to maintain financial stability and support economic growth.

In summary, the central bank’s actions to increase the cash reserve ratio and policy rate are likely to exacerbate the already challenging economic environment in Ghana, particularly for the financial sector.

It is important for policymakers and stakeholders to work together in finding solutions that support financial stability and promote sustainable economic growth.

Source: Ghana Web

The Paramount Chief of Nima, in the Ayawaso East Municipality of the Greater Accra Region, Nii Futah, has urged Parliament to consider amending sections of the law that allow a girl child the right to consent to sex aged 16.

According to him, this would help address the legal discrepancies that existed between when a girl could consent to sexual relationships and the legal marriage age.

Nii Futah made the call during a Capacity Building Engagement on Gender-Based Violence and HIV, held for traditional leaders and some community members at Nima, in Accra.

The engagement, organized by the International Network of Religious Leaders Living with or personally affected by HIV/AIDS (INERELA+ Ghana), with funding from the United Nations Women Trust Fund, aimed at increasing knowledge and awareness on gender-based violence and HIV and AIDS.

Currently, Ghana’s Criminal Offences Act, 1960 (Act 29), pegs the age of sexual consent at 16 years old, the minimum age at which an individual is considered legally old enough to consent to participate in any sexual activity.

However, the country’s Children’s Act and the Criminal Procedure Code 1998 (Act 30), set the legal age for marriage at 18.

Nii Futah noted that the two years period between the ages of consensual relationships and marriages was a recipe for disaster.

He said: “The issue of marriage, I believe that, is not about when a girl gets married earlier than 18 or so she is more likely to have STDs or so, I do not think there is any study in that. The problem remains education and maturity, making a girl, having her properly educated and mature to look after a home, I have no problem with that.

“But, if a girl can go into a relationship at 16, and she can sleep with a man at 16 without any responsibility and that is allowed by law and that law prevents that girl from getting married so that the man can take responsibility over that girl, there is something wrong with that.”

He added that: “You know, society gets frightened with this, and I cannot prevent my girl from having an affair with a boy at the age of 16 because, if you say she has a right to do so, then, that means I do not have the right to stop her from doing it, with all its consequences, but she should wait until 18 then, on her own consent get married.

“I have heard this a few times. I don’t know how it managed to get into our constitution, but definitely, there’s something wrong with that constitution. If it is also a law outside of the constitution, that is, a Legislative Instrument (LI) whatever, then, we must look at it carefully.”

Nii Futah also expressed concern about the recent rise in HIV infection in the country, adding that the government must intensify education on the virus to curb the trend.

Nana Yamfoah Amua Sekyi, Director, of Public Education, Commission on Human Rights and Administrative Justice (CHRAJ), said the Children’s Act seriously frowned on child marriages and warned parents against encouraging such acts.

According to her, children whose hands were given in marriage become a burden not only to their families but also to society.

Chief Superintendent Eric Asiedu, Nima Division Police Command, said the command took seriously issues of defilement and emphasized the need for community leaders not to protect perpetrators of such crimes.

He also entreated parents not to shirk their responsibilities to protect them from falling into the hands of sexual predators.

Mrs. Paulina Louisa Essel, a Certified Counselling Psychologist, CHRAJ, bemoaned the continuous stigmatization of persons living with the virus.

Speaking on the effect of HIV and mental health, she explained that stigmatization remained a major challenge to the fight against HIV in the country, including getting affected persons to go for anti-retroviral drugs.

“The effect is that many feel ashamed when they are stigmatized, causing them to go into isolation,” she said.

She appealed to the traditional leaders to help sensitize their communities to the disease and the negative impact of stigmatizing persons living with the virus.

Mrs. Mercy Acquah-Hayford, National Coordinator for INERELA+ Ghana, entreated pregnant women living with HIV to disclose their statuses on time for early treatment to protect their unborn babies from contracting the virus.

Source: Ghana Web

A 40-year-old Health Promotion Officer of the Nkwanta South Municipal Hospital, Richard Azaglo, accused of defiling two minors aged 15 and 13 years, has been granted bail in the sum of GH¢10,000 with one surety by the Jasikan Circuit Court.

The Court presided over by Alfred Kwabena Aseidu adjourned the case to April 13, for case management and conference after Azaglo pleaded not guilty.

Detective Inspector Nkansah, Prosecuting told the Court that the victims, who were students, lived with the accused person and his wife in the Municipality.

He said the accused injected some chemicals into the bodies of the victims and later had sex with them after they fell asleep.

Detective Nkansah said the complainant, a teacher of one of the victims, noticed some changes in her and after confronting the victim, she opened up to the teacher that Azaglo had been giving them some injections.

He said the victim further said that the injection made them fall asleep immediately and they felt very weak while feeling pains in their private part.

Detective Inspector Nkansah said the complainant on March 24, reported the case to the Nkwanta Social Welfare Office, which referred the case to the Domestic Violence and Victims Support Unit of the Ghana Police Service.

He said a medical form was issued for the victims to attend the hospital and the report showed that there was penetration on the victims, leading to Azaglo’s arrest.

Source: Ghana Web

Nigerian singer David Adeleke widely known by his stage name Davido, has spoken about the people who have passed away in his life.

In an interview with radio presenter Tosan Wiltshire on Beat 99.9 FM, the singer revealed that he has dedicated a song off his ‘Timeless’ album to people who have passed away in his life including his son, Ifeanyi Adeleke.

According to Davido, the people who have died in his life are legends.

Recall that the singer’s son passed away on October 31, 2022, after Davido lost his best friend and bodyguard.

Davido spoke about the grief he has experienced and mentioned that the song ‘Legends Can Never Die (LCND)’ which is on the ‘Timeless’ album was written as a result of his admittance that even if they aren’t physically present with him anymore, he still feels their spiritual presence all around him.

He said, “Everybody knows that I lost my mother at 10. Losing my best friend and my bodyguard in one to two years, and then losing a child and all that together.

“I don’t think the song is really being sad. I just feel like since I have lost all of them, I don’t want to really feel like they have left me spiritually. I still have them around me a kind of. They were all legends. So that’s why I say that a legend never dies.”

Source: Ghana Web

The finance ministry’s refusal to pay monies due the Common Fund has caused projects in districts to cease due to lack of funds, the Minority in parliament has said.

The arrears owed by government since 2018 has summed up to GH¢6.2billion; a situation which according to them is unacceptable.

The Minority Chief Whip, Kwame Governs Agbodza, in an engagement with media after the District Assemblies Common Fund’s Administrator met with the Committee of Parliament, expressed worry over delays in releasing annual allocations to the Fund even though government has received those funds in the form of taxes.

He noted that once the money had been collected in terms of taxes, it was the Minister of Finance’s duty to ensure accounts of the District Assemblies’ Common Fund were credited.

“It is quite clear that since 2018 the Common Fund has been unable to receive an amount of GH¢6.2billion, which is money due in accordance with Article 252(2) of the Constitution – and my colleagues on the Committee will tell you that it is not an option for government to pay the money or not.

“Today, what it means is that there are many Assemblies whose staff go to work and do nothing; basically, they go and sit around a table doing nothing and then close.

“As a result, the Assemblies are unable to provide the services required of them, and this is not good for our country,” he said.

Mr. Agbodza appealed for the Finance Minister to ensure that all monies due the District Assemblies Common Fund are released to enable various Metropolitan, Municipal and District Assemblies (MMDAs) to carry out their functions effectively.

“It’s not as if the money is missing. You have collected the money through taxation, so you have absolutely no right to breach Article 252(2) of the Constitution,” he added.

He further added that failure by government to release the funds will compel the NDC Minority to refrain from engaging in any business from the Business Committee of the House or the Finance Ministry.

“We are very much appalled, and we hope that our colleagues on the other side will support us to encourage or compel the Finance Minister to make the expected releases to the Common Fund – so that those monies will go to the District Assemblies and benefit the people of this country.”

Source: Ghana Web

Isaac “The Royal Storm” has admitted his opponent is a tough opponent and will come into the ring with enough quality but remains confident of victory.

Dogboe would seek to write history once again as he faces Cuban southpaw Robeisy Ramirez on Saturday, 1st April, at the Hard Rock Hotel and Casino in Tulsa, United States of America (USA).

Dogboe said at a pre-match press conference that, going past Ramirez would be a difficult one but was confident of overcoming the challenge because he had prepared adequately for the fight.

“I have a second chance now. I know that Robeisy is tough. He is a good fighter. But I know that we would come out with the victory on April 1,” Dogboe stated.

“The Royal Storm” feels great ahead of his second world title bout in his career after losing twice to Navarrete but has since won his last four fights against good opposition and is ready to become a time and division champion.

“I feel great. They say that the third time’s a charm. The first time was great. The second time wasn’t all that great. But I feel great about this trip.

“I’m always hopeful. If I say I’m going to do something, I’m always going to show up. I thank God for giving me that mental fortitude. That’s why everything that has transpired in my boxing career has happened,” he said.

Source: Ghana Web

Prophet Prince Elisha Osei Kofi, the Founder and General Overseer of Grace Family Church (formerly Power Embassy Church), has advised married men not to trust their wives but respect them.

“You don’t have to trust women. Women are not to be trusted. We don’t trust ourselves as men, so why should we trust women? Kwabena [referring to the host] do you trust yourself? Let us put you in a room and bring in a naked woman to see if you can handle it. You should not put your trust in your wife. All you have to do is respect her, treat her well, and protect her.”

He went on to say that men should protect their wives and not let them go out alone all the time.

“As a married man, you should not let your wife go to the club by herself. Some men allow their wives to date other men, and if they are unlucky, their wives are pursued by other men. You are a pot-belly man who allows your wife to go out by herself and men with six packs. That is not correct.”

Meanwhile, the man of God has also advised men who engage in long-distance relationships and marriages to be cautious.

Source: Ghana Web

Hundreds of delegates and party supporters of the National Democratic Congress (NDC) in Akatsi South of the Volta Region have given Dr. Kwabena Duffuor, Presidential Flagbearer hopeful, a rousing welcome to the Constituency as part of his tour to the Volta Region.

Dr. Duffuor, a former Finance Minister is currently on a three-day campaign tour of the Region to canvass for votes ahead of the Party’s Presidential and Parliamentary primaries, which are slated for Saturday, May 13.

In an encounter at the Catholic Secretariat at Torve in the Akatsi South Municipality, Dr Duffuor among other policies, assured delegates who converged at the venue of the restoration of Ghana’s economy within two years of his administration if elected as President in 2024.

Outlining some of his key policies and programmes for the next Duffuor-led administration, he said all party executives would be given proper salaries and care.

He stated that it was time he changed the party’s current posture into what he called a ‘business-oriented Party’ and the use of professionals who worked for the NDC for victory if elected as the next President of the Republic after the primaries.

“NDC will be a stronger party from now, and it is time I come in to rescue the party from total collapse,” he said.

Dr. Duffuor promised to strengthen the party by introducing some special plans for cadres such as a pension scheme for the aged who served the party and were over 60 years “so you will not feel pained.”

On the upcoming primaries, Dr. Duffuor appealed to the delegates to give him the mandate to lead the party onto the path of prosperity and progress devoid of insults.

“Politics is about serving the people. This is an internal contest, and you must know that insults do not win elections. Do not insult your family members and fight because of family contests. We must come together to drive away the NPP in 2024,” he added.

Dr Duffuor also commended party faithfuls who served the party over the years and pledged to make every constituency a business incubation center where individual financial needs would be protected.

He thanked Mr. Bernard Ahiafor, the Akatsi South Member of Parliament who worked as his lawyer in his business entity, for exhibiting excellence both in the political and other fields over the years.

Dr. Duffuor on his day-one tour, met some Regional and constituency executives of the party in Central Tongu, North Tongu, South Tongu, and Akatsi South.

The three-day tour would see him engaging other constituency executives at the various constituencies before departing to Accra.

Mr. Edem Asinyo, Dr. Duffuor’s spokesperson, Mr. Yao Boateng Gyan, a former National Organiser of the party, Mr. Bright Ege, the Deputy Volta Regional Secretary of NDC, and other party officials, formed part of the entourage.

Dr. Kwabena Duffuor served as the governor of the Bank of Ghana. He was named one of the four best Central Bank Governors in the World at an IMF/World Bank meeting in 1999.

Mr. Kojo Bonsu, Former Metropolitan Chief Executive of Kumasi, and Dr. Duffuor are contesting former President John Dramani Mahama after the trio had been vetted and cleared to contest in the May 13 decider.

Source: Ghana Web