All restrictive insurance conditions for export transactions with a credit duration of more than two years (medium/long credits) to Ghana have been lifted by Belgian export credit agency ONDD.
Henceforth, insurance without particular requirements is possible for both private and public debtors. The ceiling for these transactions has been increased to €300mn. However, premium category (6 out of 7) remains unchanged.
With President Kufor re-elected, Ghana can pursue its course of macroeconomic stability, claims OND. Results are adequate, as witness the continuous reduction of the budget deficit that until recently was one of the main worries.
Dependence on money transfers from the diaspora and particularly on international aid as the main financing sources remains the main flaw in the Ghanese economy.
Economic fundamentals are improving in the meantime in close cooperation with the IMF and thanks to the favourable international climate for the export of the main natural resources. Even when the imported inflation of oil prices threatens to slow down growth and to increase the current deficit in the balance of payments, the economic outlook remains positive.
Tolerance of foreign debt has improved after reaching, mid 2004, the completion point of the HIPC debt initiative and the growth in government revenue.