GRi Business, Economics & Finance 24 – 03 - 2003

Minister of Industry visits ASHFOAM

Insurance law under review

Cedi gains against seven major currencies

 

 

Minister of Industry visits ASHFOAM

 

Accra (Greater Accra) 24 March 2003- Dr Kofi Konadu Apraku, Minister of Trade and Industry, on Friday visited the premises of ASHFOAM Company Limited, which was gutted by fire on Thursday evening.

 

An official statement issued in Accra said the Minister, who was accompanied by the some officials of the ministry expressed the government's sadness at the destruction caused by the fire to the Board, Management and the staff of the company.

 

Dr Apraku pledged the government's determination to assist the company to start production as early as possible. He commended the Ghana National Fire Service  (GNFS) and neighbours of the company for their timely intervention to bring the fire under control.

 

Fire on Thursday night swept through the finished products and processing unit of the company destroying property worth millions of cedis. The source of the fire was not immediately known but it was believed that the combustible nature of foam products and chemicals used for production, immensely contributed to fierce nature of the fire.

 

According to the statement the Management told Dr Apraku that it would do everything possible to start production within three months. It said no member of staff would be laid off because of the disaster.

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Insurance law under review

 

Accra (Greater Accra) 24 March 2003-The State Insurance Company (SIC) on Friday said its corporate laws were under review to bring them in consonance with the International Association of Insurance Supervisors (IAIS) for confidence to be generated in Ghana's insurance business.

 

To that effect the PNDC Law 227 was being reviewed and also to ensure that the operations of insurance companies in the country could lead to greater mobilization of funds for national development.

 

It said when more internal funds were generated government could borrow from it to undertake development projects leading more employment avenues while the holders of insurance policies would be assured of qualitative benefits.

 

Franklin Owusu Asafo-Adjei, Deputy Managing Director of SIC lecturing a group of journalists at a two-day workshop on the operations of the Company said the draft bill on the review of the insurance laws was with the Attorney-General's Department for fine-tuning before it was submitted to Parliament.

 

He told the journalists at the workshop that they should upgrade their knowledge on the operations of insurance companies and the need for them to educate the public on the benefits of insurance policies.

 

It was important for the public to know how insurance affected their lives and the protection and development it could give to them. Asfo-Adjei said insurance was the main terms of the economy, in that it generated funds such as from life, motor and fire accidents and educational policy holders, which, when accumulated could be invested in the national economy.

 

That could lead to lending to businesses, which could expand and employ more workers with the consequent increase in the economies of scale. He said those claimants who used forged documents with the connivance of some doctors, policemen and lawyers would always be found out through the enhanced investigation methods by the SIC.

 

"Those false practices were dangerous because when such people could not get their ways through they turned round to scare genuine prospective policy holders to enjoy the benefits of insurance", Asafo-Adjei added.

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Cedi gains against seven major currencies

 

Accra (Greater Accra) 24 March 2003- The Cedi closed the week regaining some of its value against seven major currencies, maintained its strength against one and lost against two, according to the Average Inter-Bank Exchange Rates released by the Ghana Association of Bankers.

 

The Cedi gained 27.23 cedis against the Pound Sterling; 23.99 cedis against the Euro; 23.28 cedis against the Swiss Franc; 3.85 cedis against the Canadian Dollar; 3.49 cedis against the Danish Kroner; 0.27 cedis against the Japanese Yen; 0.04 cedis against the CFA Franc and maintained its value against the Naira.

 

It, however, lost 7.25 cedis against the South Africa Rand and one cedi against the dollar when being bought but maintained its selling price of 8,651.00 cedis. Below are the comparative figures for Thursday, 20 March 2003 and Friday 21 March 2003.

 

Currency                      Buying                          Selling

U.S. Dollar                   8,468.91 cedis            8,651.00 cedis

Pound Sterling              13,269.09                    13,556.12

Swiss Franc                  6,125.80                      6,253.98

Canadian Dollar            5,724.86                      5,845.67

Danish Kroner             1,213.12                      1,238.61

Japanese Yen               70.69                           72.17

South African Rand      1,037.51                      1,055.73

Euro                             9,011.27                    9,197.45

CFA Franc                   13.74                           14.02

Naira                            67.62                           69.07

 

Friday 21 March 2003

Currency                      Buying                          Selling

U.S. Dollar                   8,469.91 cedis            8,651.00 cedis

Pound Sterling              13,241.86                    13,530.16

Swiss Franc                  6,102.52                      6,230.50

Canadian Dollar            5,721.01                      5,842.04

Danish Kroner             1,209.63                      1,234.97

Japanese Yen                70.42                          71.91

South African Rand      1,044.76                      1,063.23

Euro                            8,987.28                      9,176.73

CFA Franc                   13.70                           13.99

Naira                            67.62                           69.06

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