Due to the government's debt restructuring program, two of Ghana's leading commercial banks, GCB Bank Plc and Standard Chartered Bank Ghana Limited, have recorded losses in 2022.
Top Ghanaian institutions incur their first loss as the country restructures its debt.
According to a report by Bloomberg, audited accounts of these two banks revealed that the GCB posted a net loss of GH593.4 million for the year ending in December 2022, the first time this has occurred since 1993, and Standard Chartered Bank Ghana Ltd also reported a loss of 297.8 million cedis.
Bloomberg calculations indicate that institutions operating in the second-largest economy in West Africa have suffered a loss of approximately $1.4 billion.
Meanwhile, Ghana is restructuring an estimated 576 billion cedis worth of its public debt.
Ken Ofori-Atta, Ghana's finance minister, is in charge of the Domestic Debt Restructuring Programme (DDEP) and the foreign debt restructuring.
He seeks to alter a repayment plan agreed upon by the government of Ghana and its creditors.
The government of Ghana asserts that the country is cash-strapped and unable to meet its domestic and international debt obligations.
In a related development, local bondholders and industry experts have expressed alarming concerns about the government's restructuring strategy.
Top Ghanaian institutions incur their first loss as the country restructures its debt.
In addition, the 2022 Audited Financial Statements published by a number of banks demonstrate that the debt exchange program has already taken its toll.
Restructuring Ghana's debt is essential for the government to obtain $3 billion from the International Monetary Fund (IMF).