IEA says economy rocked last year by poor gold, cocoa prices
Ghana and European Union sign Agreement
Creditors of liquidated banks to contact liquidator
IEA says economy rocked last year by poor gold, cocoa prices
Accra (Greater Accra), 21st January 2000
The Institute of Economic Affairs (IEA) on Thursday said Ghana's economy suffered last year following the fall of cocoa and gold prices because the economy was not diversified enough to absorb the shocks.
This was contained in the economic think-tank's publication on its "mid-year 1999 economic review and outlook" presented by Professor Bartholomew K. Armah, a member of the Institute, in Accra.
He suggested the re-ordering of national priorities to reflect changes in the circumstances to counter the effect of such negative developments.
As a long-term measure, Prof. Armah called for export diversification into primary and manufactured goods, enhancing agricultural productivity and encouraging domestic service and investments.
"There should also be effective control of the size and quality of the country's population and at the same time promoting value added goods for export.
"Already, the economy's performance is clearly out of line with the benchmarks and targets of Vision 2020."
Prof. Armah said a comparison of key macro indicators in the first half of 1999 with corresponding indicators for the same period in 1998 reveal a decline in economic performance.
He said while trends in the broad money supply, the bank rate and the point-to-point rate of inflation were positive, there were clear indications that the economy's movement towards macro-economic stability, which began some 18 months earlier, might be losing steam.
Cocoa, gold and timber, which account for more than 80 per cent of earnings from export, were vulnerable to external shocks.
Between 1987 and 1999 trade declined by a cumulative 21 per cent while targets to achieve single inflation digit and higher GDP growth rate could not be achieved.
Prof. Armah said the only way to get back on track in reasonable time is to exercise the strictest economy in the use of available meagre resources.
There should also be greater efficiency both in revenue mobilisation and the use of resources.
This requires that all types of waste, including those arising out of corruption and extra budgetary expenditures, are avoided.
Prof. Armah cautioned that prudent economic management programmes should not be abandoned just because the country is approaching elections.
Nana Wereko Ampem, Gyaasehene of Akwapim Traditional area and Chancellor, University of Ghana, Legon, who chaired the function called for the publication of up-to-date statistical data that are reflective of the economy to help planners.
He asked for the revival of the Economic Society and publication of economic bulletins to discuss issues and come out with suggestions that will help solve the economic problems.
Nana Wereko Ampem, who launched the publication, said the role of direct private foreign investment in the economy is low and everything must be done to attract more funds.
Dr George Apenteng, Director, IEA, said the Institute will continue to support efforts in finding solution to the nation's economic problems.
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Ghana and European Union sign Agreement
Accra (Greater Accra), 21st January 2000
Ghana and the European Union (EU) on Thursday signed a 93 billion cedi (27 million Euros) agreement for the second phase of the National Indicative Programme (NIP) to enhance the decentralisation process.
Mr. Victor Selormey, Deputy Minister of Finance and Mr. Charles Brook, EU Ambassador and Head of Delegation of the European Commission in Ghana signed for their respective countries.
Mr. Selormey said the money is a grant fund that will enhance the government's decentralisation process.
The programme covers balance of payment support, road rehabilitation, water and electricity supplies, health, audit service and technology training.
The amount is part of the EU's total commitments to Ghana promised at the last donors meeting.
A further 38.5 million Euros is expected for the execution of about 2,000 micro projects, Mr. Brook said.
Seven hundred projects have been listed for for completion this year and the rest in within the next three years.
Mr. Brook, said the total amount will be in two trenches of which 3.2 million Euros will first be released as start up phase and 23.8 million Euros as the main programme.
Building on past experience, the new programme, essentially community self-help, will be focused in 56 districts within the Central, Volta, Northern, Upper East, Upper West and Ashanti Regions.
He noted that in the past, communities have concentrated on education, health and water supply facilities with the aim of reducing poverty and improving living standards in the rural areas.
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Creditors of liquidated banks to contact liquidator
Accra (Greater Accra), 21st January 2000
The Registrar-General's Department is requesting all creditors of the Bank for Housing and Construction (BHC) and the Co-operative Bank to lodge with the department their proof of debt on or before the close of business, Tuesday, February 29, 2000.
A statement issued on Thursday by the Department and signed by Mr. J.K. Harlley, a Chief State Attorney, on behalf of the official liquidator said the banks are being wound-up officially.
It said creditors who default will be excluded from the benefit of any distribution of dividends.
The statement said this action is in pursuant to Section 22 of the Bodies Corporate (Official Liquidations) ACT,1963 (ACT 180).
The office of the Official Liquidator can be located at Price Waterhouse Coopers, fourth floor, Gulf House, Off Legon Road, near Tetteh-Quarshie Roundabout, PMB CT.42, Cantonments, Accra.
The statement said all persons owing the two Banks are also required to make payments or arrangements to that effect with the official Liquidator on or before the Tuesday, February 29, 2000.
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