DDEP: All banks submit recapitalisation plans ahead of September deadline - BoG

Governor of the Bank of Ghana, Dr Ernest Addison, has said all banks whose capital had been affected by the Domestic Debt Exchange Programme (DDEP) have complied with the directive to submit their recapitalisation plans.

This comes after the Central Bank at its 112th MPC meeting held in May this year said it had directed banks to submit their plans ahead of the September 2023 deadline as part of conditionalities under the current IMF programme for Ghana.

Dr Ernest Addison who was addressing journalists at the 113th MPC press briefing on July 24 said the recapitalisation plans will now be reviewed by the Central Bank and finalised by the banks for final approval.

“All the banks have fully complied and summited their recapitalisation plans for review,” Dr Ernest Addison said although he did not provide further details of which specific banks have thus far submitted their plans.

As part of conditionalities under the IMF-supported programme, individual banks operating in the country are expected to submit credible time-bound plans to help rebuild their capital buffers on a phased manner.

Following the completion of the first phase of the DDEP, the capital of all 23 commercial banks operating in the country was adversely impacted with 16 of them recording significant losses in 2022 although five banks recorded profits in the year under review.

The Central Bank in a recent analysis also showed that commercial banks recorded losses totalling GH¢8 billion in the year under review.

MA/NOQ