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ACCRA, June 11 Ghana's central bank is funding
the country's budget deficit but the amount does not exceed 10
percent of revenue and any excess will be made up by the end of
2014, governor Henry Kofi Wampah told Reuters in an interview.
"We know the government is about to issue a Eurobond soon
which we can use to replace the financing we have made, so it's
not out of the ordinary or abnormal for us to provide the
government's financing needs at this time," Wampah said.
Fitch ratings agency said on Monday that the bank was
printing money to finance the deficit which could exacerbate the
country's fiscal problems and weaken the cedi currency.
Ghana faces a series of fiscal problems including a
double-digit budget deficit for two years, a currency that has
depreciated 28 percent this year, low import cover and high bond
Those challenges are hurting the country's reputation for
stability and robust economic growth.
The bank's import cover rose sharply to $5.1 billion, or 2.8
months of imports, as of June 6, Wampah said. But he declined to
give a comparative figure.
Ghana is due to issue its third Eurobond in July.
(Reporting by Kwasi Kpodo; Writing by Matthew Mpoke Bigg;
Editing by Hugh Lawson)