If The IMF Needs Money

THE MANAGING Director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, has warned that the Fund will in the near future need more money if the global financial crisis continuous to heighten.
He said,“IMF has sufficient resources to cope with the crisis but if the crisis goes on, then six months from now, we will need more money.”
Before the crisis erupted, the IMF had around $200 billion in available resources and access to a further $50 billion. Since then, Japan has offered to lend the IMF an additional $100 billion but Strauss-Kahn has indicated that the IMF may need an extra $150 billion to help emerging markets and low-income countries get through the crisis.
But my question is if an international financial institution like the IMf that would bail small econmoies like Ghana out is saying it needs more money that where can we turn to when we need help.
According to the IMF Boss, 2009 will not be a good year for the world economy, “even if we see recovery at the beginning of 2010".
An IMF report has indicated that prospects were worse than expected not just in the United States and Europe but also in major emerging market economies such as China, India, and Brazil, which would experience very low growth compared with recent historical trends.
The IMF has proposed that governments in a position to do so should act together to inject a global fiscal equivalent to about 2 percent of world GDP—$1.2 trillion.
“The world faces a deepening economic crisis”, the IMF Managing Director warned.
Strauss-Kahn said that the crisis highlighted the need for better regulation and supervision of the banking sector, especially in countries such as the United States.
He said IMF would significantly adjust downward its forecast for world growth for 2009 when the 185-member international institution announces a revised assessment of the global economy on January 29.
But Strauss-Kahn said in an interview with the BBC's Hardtalk program, that economic prospects had worsened over the past few months and his outfit would announce lower numbers at the January 29 press conference in Washington DC.
A number of governments around the world have announced stimulus plans, including in the United States, Japan, Europe, China, and India.
But Strauss-Kahn said he did not think enough had been done so far. "In Europe especially, they are still behind the curve," he said.
Strauss-Kahn warned of the risk of social upheaval and unrest in some countries worst affected by the downturn and said he expected additional countries to seek IMF help, not just in Eastern Europe, but elsewhere in the world, including Latin America where some countries were "just on the edge."
The IMF has so far committed $47.9 billion in lending to a number of economies affected by the crisis, including Belarus, Hungary, Iceland, Latvia, Pakistan, Serbia, and Ukraine. It announced a precautionary loan for El Salvador this month and an IMF team is also in negotiations with Turkey.

Will Ghana hit World Oil Map?

Ghana is expected to hit the world oil map by 2010 when it start drilling about 120 million barrels oil a day.
Komos Energy, a giant in the exploration of oil in Ghana, has disclosed that Ghana would hit the world oil map by 2010 when it starts drilling about 120 million barrels of oil a day.
It also disclosed that more reservoir under the Jubilee Field had been discovered which when drilled could give Ghana about 2.5 billion barrels a day.
A delegation from Kosmos Energy led by James Musslema, the Chief Executive Officer (CEO) yesterday called on President John Evans Atta Mills at the Castle in Accra to congratulate him for his election and also to give him up-to-date report on their exploration.
The CEO described President Mills triumph and the success of the elections as a testimony for growth in democracy on the African continent and the world at large.
Mr. Musslema informed President Mills of his intention of regularly visiting him to brief him of any development in the oil exploration industry.
For his part, Prof. Mills commended Kosmos Energy for their discovery and hard work.
He called for a well coordinated effort from the government and the oil company to ensure the full benefit of the oil.
President Mills reminded the oil exploration firm of the need to develop their areas of operations and providing jobs for the people in the area.
He also urged Kosmos Energy to work within the confines of the laws of the country, pledging his support to the company to ensure that they work to the benefit of Ghanaians.
The crude oil was discovered after years of exploration at the Cape Three Point area in the Western Region of Ghana.
Kosmos Energy, a UK oil and gas exploration company made the discovery in June 2007.
The company obtained an exploratory license in 2003 and has been conducting exploration works for some time now.
meanwhile Tullow Oil Plc.the second company after Kosmos to announce the discovery of oil in commercial quantities in Ghana last year has indicated it intends to raise about £400 million to strengthen its balance sheet and fast track the development of major oil finds in Ghana and Uganda.
Chief Executive Aidan Heavey, who disclosed this on Wednesday, said the oil exploration and production company will effect this through placing new stock shares equivalent to almost 10 percent of its existing capital.
According to him, Tullow is ready to refinance existing debt facilities and expand them further from $1.4 billion currently to around $2 billion by next month.
Mr Heavey added that the share placing is not a condition for the refinancing exercise to be embarked upon.
A trading statement of the company also revealed it had abandoned the planned $435million sale of its 11 percent stake in the M’Boundi field in the Republic of Congo to the Korea National Oil Company.
Also it noted it was writing off about £235million mostly for reductions in the value of assets in countries such as Mauritania and Tanzania.
The placing of 66.9 million shares was set at 600p a share and this has received wide support from Tullow’s shareholders.
Tullow’s largest investors include BlackRock, M&G, Legal & General, Standard Life and Threadneedle Asset Management. Its brokers are RBS and Merrill Lynch.
It would be recalled that a day after President John Evans Atta-Mills’ inauguration, Tullow Oil announced it has found more oil at its Mahogany-3 well under the Jubilee field.
It further indicated that the results had raised its expectations for the field, although it did not specify new reserves estimates.
At least one billion barrels of high grade oil are expected to be drilled from an offshore rig the company has contracted for a period of five years and by the latter part of next year, Tullow hopes to start producing oil.

Ghana's Depleting Natural Resourse

Depletion of Ghana's Natural Resources Alarming

10 per cent of the Ghana's Gross Domestic Product(GDP) is lost annually through annually through unsustainable management of natural resources.

Though the country is well endowed with natural resources, Gold, and timber, Ghana has twice the per ca pita output of the poorer countries in West Africa and remains heavily dependent on international financial and technical assistance. Gold, timber, and cocoa production are major sources of foreign exchange.

Much of the country's economic activities and the livelihood of the people depend on the country's natural resources but a study has indicated that it is being depleted at an alarming rate.

many concerns have been expressed with experts and stakeholders expressing diverse views on how to sustain Ghana's resource.

civil society organisations (CSO) have also been called upon to partner government to find lasting solution to the challenges that confront the conservation and sustainability of the natural resources.

An official of the Ministry of Finance and Economic Planning (MoFEP) which sponsored the study on the cost of environmental degradation thinks strengthening environmental environmental governance is fundamental to ensuring that a greater benefit is derived from Ghana's natural resources.

How will this be done? he is queried and he states that a more efficient utilisation of natural resources, better collection of revenue and a greater equity in the distribution of the benefits from resource exploitation would safe the nation a great deal.

Nana Juabeng-Boateng Sireboe who is the Chief Director at the MoFEP also mentioned that it would require better regulation and management.

Institutions like the Environmental Protection Agency, Forestry Commission and the Mines Commission have been tasked to undertake Natural Resources and Environmental Governance (NREG) and members of these institutions held a civil society consultative Forum on Tuesday January 19, 2009.

The NREG which started in 2008 and has its first phase expiring by 2012 focuses on key aspects of governance reforms in forestry, mining and environmental management. it is also to ensure improved environmental governance , reduce poverty and contribute to sustainable economic growth.

At the forum, the participants who were mostly stakeholders involved in the natural resource and environmental industry indicated how they could facilitate new research and advocacy initiatives for the achievement of NREG priorities and progress.

Lidi Remmelzwaal, Netherlands Ambassador to Ghana announced that her country is providing 1.6 million pounds as its contribution towards the creation of a Multi Donor funded civil society facility that would assist building capacity of CSO.

" no institution can solve the environmental degradation problem alone," she said and called for a common approach and a combined effort by all stakeholders " for the good of the Ghanaian society."

Obama Takes Office

Thousands of Ghanaians stayed glued to their televisions sets of varied sizes just to catch a glimpse of the historic inauguration US President Elect, Barack Obama take the oath of office on January 20.
Ghanaians have for some time now followed the political events unfold in one of the worlds powerful country-America.
pockets of people were seen gathered around televisions sets along the streets especially in TV repair shops , stores while others watched in the comfort of their homes and offices.
hundreds of people gathered to watch the event from a giant screen from the W. E. B. Du Bois Center for Pan African Culture a few meters from where the African -American civil Rights leader is buried.
At the Du Bois Center, the crowd including United States Embassy Officials, university students, Rastafarians, students from the Accra Girls High School and a ground that called it self the Obama fan club cheered amidst, a jazz band- the Captains and the Nu Gypsies as images of the inauguration flashed across the screen.
Here in Ghana as well as in other parts of the world there is high optimism that Barack Obamas' presidency will improve the US relation with the rest of the world.
The 47 year old son of a Kenyan Born, Barack Obama Senior, and an American lady, Ann Dunham who has been sworn in as America's 44th president and its first African -American leader.
in a wintry Washington DC, where the inauguration ceremony took place a crowd packed Washinton's National Mall where Obama took the oath of office at exactly 1700 GMT.
Mr Obama placed his hand on a bible and promised to " preserve , protect and defend" the US Constitution.
the inauguration, a deeply poignant and long-awaited moment of racial healing for America, took place after the national holiday in remembrance of Martin Luther King Jr., a civil rights advocate.
A talk with many Ghanaians confirmed the hopes of many Africans across the continent who see Obama's victory as a sign of hope, a validation of the continents struggle for liberation.