As So reviving power sector to support

As banks are required to take approval from Bank of Ghana before writing off loans, this creates an incentive for Banks not to write off loansWeak capital buffers and difficulties in realizing collateral increase banks’ reluctance to address NPLsNo secondary market for distressed debts in GhanaLack of debt counseling is another common problemThe efficiency of the institutional framework (particularly judicial systems)  is low which slow banks down in taking over properties or securitiesAbsence of central credit registration system results in many fraudulent attempts to get creditShort term solutions to deal with loans that are already turned bad:Government can infuse more capital in banks to encourage lendingFacilitation of various restructuring tools, such as debt-equity swaps Development of distressed debt markets by improving market infrastructure and, in some cases, using asset management companies (AMCs) or other special-purpose vehicles that could help kick-start a market for distressed debt.Tax rules should be reviewed and amended which discourage creditors from provisioning or writing off loans or from selling any underlying collateral also inhibit debtors from accepting debt restructuring or write-off deals.Securitization of bad loans could be a solution as adopted by Italy and China.Long term solutions to make sure similar situation does not repeat:Establishment of a Public Credit Registry which can provide a complete financial overview of any person or entity to the banks and other credit agencies.Creating mechanism for Banks to conduct necessary sensitivity analysis and contingency planning while appraising the projects and it should built adequate safeguards against external factors.Fixing the loopholes in the Borrowers and Lenders Act that encourages some borrowers to sue banks on some issue which slow banks down in taking over properties or securitiesErratic power supply is one of the reason why investors failed fulfil their debt obligations. So reviving power sector to support industry.h to recover to 7.1% and 8.0% respectively as a result of restoration of energy supply, new hydrocarbon wells coming on stream and the timely resolution of technical issues that have led to disruptions in the oil and gas fields. •The growth is expected to be sturdier in the coming years if macroeconomic fundamentals progress, and influence positively on the non-oil economy.Ghana’s economy growth is expected to have slowed down for the fifth consecutive year in 2016. Growth is projected to have fallen from 3.9% in 2015 to 3.3% in 2016.•Interest Rate in Ghana stands at an all-time average 18.09 percent and is projected to be 20 percent by the end of 2017. •In the year 2014, the Deposit Interest Rate rose up to 13.30 percent from 12.90 percent.  •Deposit Interest Rate averaged at 17.71 percent and is projected to be 14.41 in 2016. The latest value of Deposit Interest Rate in Ghana is 13.30 percent.•The unemployment rate in Ghana increased from 5.54 percent in 2015 to 5.77 percent in 2016 •The unemployment rate in Ghana has an average of 6.51 percent from 1991 until 2016, and it reached an all time peak of 10.36 percent in 2000 and a record minimum of 3.60 percent in 2006 Ghana ranks as the 64th largest export economy in the world. In the year 2016, Ghana exported $10.5B and imported $11B, which has resulted in a negative trade balance of $508M. In the year 2016 the GDP of Ghana was $42.7B and its GDP per capita was $4.29k.•The CPI inflation in Ghana has been risen from 8.73% in 2011 to 21.20 in June 2017. The inflation is expected to continue the upward trend for some time. •The bank has assured its commitment to maintain the price stability in the country and monitor developments in the economy to take further policy actions accordingly.•Due to unplanned expenses, Ghana’s debt rose to 73% of GDP in 2016 •According to IMF, Ghana is at a high risk of debt distress since the nation is planning to clear energy debts by sale of a 10 billion cedi ($2.3 billion) bonds •The government aims to reduce the debt to 60% by end of 2020 through certain monetary policy measures.•The currency Ghanaian cedi (GHS) remained relatively stable in 2016. However, in the last few months of 2016, the cedi was under some pressure, a concern to both monetary and fiscal authorities. A basic challenge for policy makers last was the rise in weakening asset quality. •The ratio of non-performing loans to total gross loans increased from 17.7% in June 2016 to 21.2% by June 2017. The Bank of Ghana has taken measures to restore the stability of the sector by requesting a recapitalisation plan from the banks with a capital shortfall and has also begun implementation of collateral requirements and development of an Emergency Liquidity Assistance. undefined undefined undefined undefined undefined undefined