Nigeria’s biggest bank by market value, Guaranty Trust (GT) Holding Company, will slowdown lending and bond trading in Ghana, following a $77 million loss.
According to Bloomberg, GT Bank will rather focus on other high-yielding African markets to boost lending by 15% in 2023.
It will therefore expand credit by not more than 5% in Ghana and limit itself to treasury bills for securities investments.
Chief Executive Officer (CEO), Segun Agbaje, said the harsh operating environment and high inflation rate in Ghana makes it difficult for businesses to make money and pay back loans.
Ghana is currently restructuring most of its public debt, causing losses for financial institutions.
The bank is facing a tough time in its second-biggest market, Ghana, due to the country’s restructuring of most of its public debt worth $49 billion.
Ghana exchanged notes worth ¢87.8 billion that paid an average of 19%, with bonds returning as little as 8.35%, causing losses for financial institutions. Most foreign creditors are still in talks with the authorities regarding the issue.
The bank had 167.6 billion naira of debt securities in Ghana, while rival lender Zenith Bank set aside 123.4 billion naira to account for the restructuring.