Systemic Risk

Ghana: Central bank must act as lender of last resort to protect banking system

By David Whitehouse

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Posted on December 9, 2022 09:40

© Ghana’s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko — Ghana’s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko

Ghana’s central bank must act as a lender of last resort to the banking system as a domestic debt restructuring deprives financial institutions of income from government securities, economists say.

Holders of domestic debt were invited on 5 December to exchange their securities for new bonds.

The bonds won’t pay any interest until 2024, when there will be the first payment of 5%, increasing to 10% in 2025.

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