₦airaland Forum

GeneralDae:
Even at this terrible state, the Ghanaian economy is much more expanded (bigger) than it was before and there are more investments than in the past.

In 2005 when Nigerian economy was expanding under Obasanjo we were having very high inflation and depreciation of the naira than we even had during sanctions in Abacha's military.

The only issue with Ghana now is that they have been shut out of the Eurobond market indirectly because the interest rates are high and lenders consider their debts unsustainable.
The exchange rate is also depreciating too fast.

With the coming of the IMF, they gain credibility again to borrow next year from international market. The lenders would believe the IMF program can help Ghana manage their debt properly.

failure of govt to achieve it revenue target because of a delay in various production unit coming online... This was the trigger to the suspension of access to debt market

Try say that in Twi. Maybe the sense is lost in translation. It doesn't make sense.

Just40:
failure of govt to achieve it revenue target because of a delay in various production unit coming online... This was the trigger to the suspension of access to debt market

Ghana run by a bunch of imbeciles did what nobody could imagine doing.
With COVID-19 disrupting global economy and occasioning economic shutdown
They went out there and borrowed commercial loans from Eurobond.
1st in Feb 2020 - they got 3B dollars.
March 2021 - they went again 3B dollars.
At this point - every rational Gov knew the exogenous risk from COVID/Ukraine war made such borrowing very risky.
Kenya and Nigeria were shopping for cheap IMF loans. Heck even South African run to IMF.
Kenya gov even squeezed in a debt moratorium during covid from G-20 debt relief
Ghana said nope - such actions will lower our credit rating - and we want to continue gorging ourself with free Eurobond dollars!!!!!!!!!
Ghana refused the commonsensical prudent approach - and dived head on to the risky waters- when nobody else.
Now it's tears.
The same Credit Ratings have now declared Ghana C minus. JUNK. Like Sri Lank/Lebanon/Argentina.
Defaulting is almost inevitable now.

Here are their own Ministry of Finance very happy to be 1st Sub-Sahara Africa country to float Eurobond in corona period

They didnt care the risks that external commercial loans like Eurobond would bring
1) Forex exchange risk - with CEDIS now dropping almost 100% dollar - the debt has doubled 100%.
2) Interest rate risk - commercial interest rise anytime - I think Ghana is now paying 20% plus

IMF was created to reduce such risk because they give you concessional loan with long maturity and often zero interest.

https://mofep.gov.gh/press-release/2021-03-30/global-investors-demonstrate-strong-support-for-ghana-fiscal-plans-and-revitalization-strategy
Ghana returned to the International Debt Capital Markets as the first Sub-Saharan African Sovereign to issue in USD since the onset of the Covid-19 pandemic, achieving a record size in excess of US$3 billion and enhancing its market access through the use of a 4-year Zero-Coupon Tranche, which is an innovative market-oriented solution to address post-covid-19 challenges and improve the cash flow required for debt servicing.

rvp2018:
why dont you copy everything - that would help show you kenya banks are fast rising - and i expect Equity & KCB to overtake all Nigerian banks in 3-4yrs - despite coming from a large pond.
https://www.thebanker.com/World/Africa/The-Banker-s-Top-100-African-Banks-2022?ct=true

This is your usual hairsplitting tactics.
We're talking top10 by such things as assets and capital, not peripheral things like growth percent. You always have to dig deep, very deep before you can be a little comfortable. At Least Nigerian banks appeared on all the charts you showed.
Point out a Kenyan bank in this chart:

rvp2018:
Something like this is more sensible Obaboon. We need to stick to intellectually stimulating conversation in this thread. You have are now not any different from Samrobo.

Samorobo is far more sensible than you. At least he doesn't resort to cheap insults like you when losing an argument.
We're talking this, not some hairsplitting nonsense:

rvp2018:
why dont you copy everything - that would help show you kenya banks are fast rising - and i expect Equity & KCB to overtake all Nigerian banks in 3-4yrs - despite coming from a large pond.
https://www.thebanker.com/World/Africa/The-Banker-s-Top-100-African-Banks-2022?ct=true

When that happens hit us,I will be willing to listen ,till then your financial system is playing second fiddle to ours. That’s just a bitter fact. I will listen to rebuttal from SA,Egypt,Morocco,heck and maybe Algeria,but kenyaaaa, God forbid . I woukk lol d rather chew sand. You are simply inconsequential to us.

rvp2018:
Something like this is more sensible Obaboon. We need to stick to intellectually stimulating conversation in this thread. You have are now not any different from Samrobo.

What is here to discuss.
Did we come up with this list. The thought that you could compete any of your mushroom banks to us is negligibly funny. A butt of joke for lack of better words.

Know when to give up in an argumen(you don’t need to drag things unnecessarily- splitting hairs for cheap scores) . Facts like this are irrefutable.

Thank you for posting this, Little Indian. We still beat you on your own chart: Nigerian banks: 6
Kenyan banks: 3

samorobo:
What is here to discuss.
Did we come up with this list. The thought that you could compete any of your mushroom banks to us is negligibly funny. A butt of joke for lack of better words.

Know when to give up in an argument. Facts like this are irrefutable.

He was embarrassed.
His own charts buried him. He will soon come back and start singing his anthem of catching up in the next few years.

obaaderemi:
Samorobo is far more sensible than you. At least he doesn't resort to cheap insults like you when losing an argument.
We're talking this, not some hairsplitting nonsense:

The crazy urge to spilt hair. Must be his coping mechanism.

obaaderemi:
Thank you for posting this, Little Indian.
We still beat you on your own chart:
Nigerian banks: 6

Kenyan banks: 3

And he wants to compare. He must be very stupid and empty. Perhaps he is just hired and need social media engagement to lighten up his mood.

obaaderemi:
He was embarrassed.
His own charts buried him. He will soon come back and start singing his anthem of catching up in the next few years.

When he eventually catch(something that will never happen) then I will be willing to pay attention,otherwise o am not here to entertain his wet dreams. He needs to be jolted back into reality.

Just40:
overspending and a delay in investment returns

Overspending on projects? I hope it's not corruption.

You starting to sound like KaziKazi with one chart. Yes growth matters - Kenya banks are growing 20% in capital & assets - while Nigeria arent (unless they are mergers) - and we havent factored the Naira has depreciated more than KShs (black market rate now trending to 800 naira to a dollar

So by end of this year - things will again change - with Kenya banks rising across the board.

obaaderemi:
This is your usual hairsplitting tactics.
We're talking top10 by such things as assets and capital, not peripheral things like growth percent. You always have to dig deep, very deep before you can be a little comfortable. At Least Nigerian banks appeared on all the charts you showed.
Point out a Kenyan bank in this chart:

Ghana and Zambia default was easy to predict - as they gorged themselves with dangerous eurobond (commercial dollar debt with flexible exchange rate - very risky very dangerous)

I did this four years ago - repeated in 2020 - 2021 - they didnt listen

Now they are desperate for IMF. I pray they get IMF deal because the alternative is very bad.

gallivant:
Obaboon, why are you obsessed with Kenya?

the question is...why is ur tin god obsessed with everyone here?

Hyperinflation starting to kick in Ghana as supermarkets prepare to jack prizes every few hours

Jonas Nyabor
@jnyabor
Some marts are taking off price tags on their products? As in, the prices change almost every other day and so for the day's price you need to check from the pay counter.

Ghana's cost of living crisis is not a joke!

obaaderemi:
Thank you for posting this, Little Indian.
We still beat you on your own chart:
Nigerian banks: 6

Kenyan banks: 3

wait for per Capita....

That is always implied. We dont have to be explicit about common sense. Always divided by 4 - or times 4 - depending on indicator before you declare Nigeria is better, at par or worse than Kenya. Otherwise if we compare kenya with Namibia - we would win all arguments except everyone knows Namibians are doing better than us.

You dont tell someone with 5 common senses whether they can see or hear - it's out there - see it.

theenchanter:
wait for per Capita....

rvp2018:
That is always implied. We dont have to be explicit about common sense. Always divided by 4 - or times 4.

I was talking to a sensible person, not you.

Common sense again. Use private message or email. Anything you post here - we will respond whenever we feel like - and you cant do anything about it. Use private message if you want to exclude others from conversation. COMMON SENSE.

theenchanter:
I was talking to a sensible person, not you.

Ghana I warned you!!! Look like by time IMF deal is decided in January - tears will be overflowing.

Steve Hanke
@steve_hanke
Thanks to the sky-high cost of living, Ghanaians don't know the price of anything anymore. Now, over 30% of businesses in the export & import industry have COLLAPSED. Today, I measure #Ghana's inflation at a stunning 101%/yr.

rvp2018:
Ghana I warned you!!! Look like by time IMF deal is decided in January - tears will be overflowing.

Steve Hanke
@steve_hanke
Thanks to the sky-high cost of living, Ghanaians don't know the price of anything anymore. Now, over 30% of businesses in the export & import industry have COLLAPSED. Today, I measure #Ghana's inflation at a stunning 101%/yr.

Steve Hanke is a drunkard. He's always predicting doom and calculates inflation by metrics not used anywhere in the world. Neither by the World Bank Standards or IMF.

rvp2018:
Common sense again. Use private message or email. Anything you post here - we will respond whenever we feel like - and you cant do anything about it. Use private message if you want to exclude others from conversation. COMMON SENSE.

common sense will be missing from you when we're talking poverty rate or other ill-fated indexes. Common sense will lost it's sense when it doesn't suit u but regain it's senses when the need arrives.

Abeg getat.

rvp2018:
Ghana and Zambia default was easy to predict - as they gorged themselves with dangerous eurobond (commercial dollar debt with flexible exchange rate - very risky very dangerous)

I did this four years ago - repeated in 2020 - 2021 - they didnt listen

Now they are desperate for IMF. I pray they get IMF deal because the alternative is very bad.

Yeah that Eurobond thing was dicey. Only Egypt took more Eurobond than Ghana in Africa. In terms of Eurobond debts related to GDP, Ghana was by far the highest Eurobond subscriber in Africa. This is a big lesson for all African countries. The shocks that go with these debts sometimes not worth it.

At least you get it.

Few years ago some Zambia woman economist Dambisa Moyo wrote some best seller Dead Aid: Why Aid Is Not Working and How There is Another Way for Africa (2009), spinning usual conspiracy against ODA/bilateral lending & blaming it for Africa underdevelopment and urged Africans to dump IMF/WB - go for Eurobond/Debt market. Her country Zambia was the first to gorge themselves with it. They are bankrupt as we speak. They did a soverign default last year and need 8.5B dollars from IMF. That is about half their GDP to emerge from the dark hole.

Next Ghana and rest of countries followed. Eurobond is easy to get - mostly 10 times oversubscribed - because even if you default - they are debt vultures out there who will buy and wait you out

Ghana biggest mistake was to not think about lean times like COVID/Wars - this what makes commercial loans in dollars very dangerous - because overnight they double, triple, quadriple - before you even factor interest payments - because you have no control over dollars & bond interest rate - soon your credit score get big hit - nobody can lend you - you default and start a catalytic process like you saw in Lebanon & SriLaka or Greece & Argentina before.

Africa countries should take cheap IMF/WB/China loans - concessional low maturity low or even zero interest loans which could pass for AID- as much as they can possibly get - and take very little Eurobond (commercial loans)

GeneralDae:
Yeah that Eurobond thing was dicey. Only Egypt took more Eurobond than Ghana in Africa. In terms of Eurobond debts related to GDP, Ghana was by far the highest Eurobond subscriber in Africa. This is a big lesson for all African countries. The shocks that go with these debts sometimes not worth it.

obaaderemi:
Overspending on projects? I hope it's not corruption.

Yes... On projects

There are too many projects dotted around the country and at various stages of completion

rvp2018:
Try say that in Twi. Maybe the sense is lost in translation. It doesn't make sense.

Economics is not your thing.. so I won't waste my time.

Convert it to Swahili and maybe you'll understand

They will never be complete now. My formeramerican colleaque told me Ghana is mortuary of half-completed projects.USAID first assignment when they get US peace corps in Ghana is to take them to tour them .

You were over-ambitious - and thought you could take money - and use it. You need to think about lean times. It not easy as just taking money out there

Just40:
Yes... On projects

There are too many projects dotted around the country and at various stages of completion

rvp2018:
Ghana run by a bunch of imbeciles did what nobody could imagine doing.
With COVID-19 disrupting global economy and occasioning economic shutdown
They went out there and borrowed commercial loans from Eurobond.
1st in Feb 2020 - they got 3B dollars.
March 2021 - they went again 3B dollars.
At this point - every rational Gov knew the exogenous risk from COVID/Ukraine war made such borrowing very risky.
Kenya and Nigeria were shopping for cheap IMF loans. Heck even South African run to IMF.
Kenya gov even squeezed in a debt moratorium during covid from G-20 debt relief
Ghana said nope - such actions will lower our credit rating - and we want to continue gorging ourself with free Eurobond dollars!!!!!!!!!
Ghana refused the commonsensical prudent approach - and dived head on to the risky waters- when nobody else.
Now it's tears.
The same Credit Ratings have now declared Ghana C minus. JUNK. Like Sri Lank/Lebanon/Argentina.
Defaulting is almost inevitable now.

Here are their own Ministry of Finance very happy to be 1st Sub-Sahara Africa country to float Eurobond in corona period

They didnt care the risks that external commercial loans like Eurobond would bring
1) Forex exchange risk - with CEDIS now dropping almost 100% dollar - the debt has doubled 100%.
2) Interest rate risk - commercial interest rise anytime - I think Ghana is now paying 20% plus

IMF was created to reduce such risk because they give you concessional loan with long maturity and often zero interest.

https://mofep.gov.gh/press-release/2021-03-30/global-investors-demonstrate-strong-support-for-ghana-fiscal-plans-and-revitalization-strategy
Ghana returned to the International Debt Capital Markets as the first Sub-Saharan African Sovereign to issue in USD since the onset of the Covid-19 pandemic, achieving a record size in excess of US$3 billion and enhancing its market access through the use of a 4-year Zero-Coupon Tranche, which is an innovative market-oriented solution to address post-covid-19 challenges and improve the cash flow required for debt servicing.

You're just dumb.... It was one of the smart things to do..


While you kept using COVID as an excuse, it had little to no effect here

rvp2018:
Ghana and Zambia default was easy to predict - as they gorged themselves with dangerous eurobond (commercial dollar debt with flexible exchange rate - very risky very dangerous)

I did this four years ago - repeated in 2020 - 2021 - they didnt listen

Now they are desperate for IMF. I pray they get IMF deal because the alternative is very bad.

Ghana hasn't defaulted on any of it debt obligations... We are not Kenya


Not every country is runned like the way Kenya is stupidly being runned by fools such that even all the relief that Ghana negotiated for Kenya, you guys still managed to default on your debt.

Madman - and the usual madness. You are facing hyperinflation. The last one send you to Nigeria. Prepare to cross borders and become Nigeria slaves

Just40:
You're just dumb.... It was one of the smart things to do..


While you kept using COVID as an excuse, it had little to no effect here