Business News of Saturday, 8 July 2017
Investment fund managers are upbeat of the impact of the disbursement of the fourth tranche of the IMF’s extended credit facility, on the stabilization of the cedi.
They believe the move should also bring some stability to the economy and bring respite to businesses.
Finance Minister, Ken Ofori Atta has hinted of a meeting between government and the Fund’s Board later this month [July].
It is unclear what will be the focus of the meeting but some industry watchers believe the meeting should culminate into the release of the third tranche of the Extended Credit Facility (ECF).
For the Head of Asset Management at SAS Fortune Fund, Anthony Degbato, the stabilization should also protect the economy from further shocks.
“The injection of dollars into the economy that goes in to support our exchange rate means that the cedi depreciation is going to be enhanced positively.”
“Considering the dollar bonds that have been issued over the years, their purpose is to make sure that we have enough dollars in the system to be able to shore up those who would want to import. So these would all work together for the economy to be better,” he argued.
Mr. Degbato further maintained, “So if there is going to be a tranche that will be released by the IMF, then it is a positive thing which is going to support the economy and improve the conditions for the people of Ghana,” he told Citi Business News.
SAS Fortune Fund performance
Mr. Degbato was speaking at the sidelines of the Fund’s AGM for 2016. The Fund’s total asset under management (AUM) stood at GH¢3,396,934. This represents a 14.3% increase over the previous year’s which recorded GH¢2,971,909.
The Managers of the Fund attributed the increase to the 6.3% growth compared to -15.33% recorded on the Ghana Stock Exchange.