Global News: Crypto exchange FTX ordered to pay $12.7 billion to customers, US CFTC says
Ghana opens its first gold refinery to gain more value from the resource
A U.S. court has ordered bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers, the Commodity Futures Trading Commission said on Thursday.
Our thoughts
This is for those that had money there. The sad part is that they're going to get back their payments at the price of crypto at that time which would mean some loss compared to now but we believe that it is better than just losing out entirely.
This just highlights the power of strong and integrated financial systems, this is particularly good even for the Nigerian entities that were affected at least they don't lose everything so we look forward to the payouts even though some people are still pushing back to get a better deal but we think this is a fair deal to start with and it can really get better from here
African News: Ghana opens its first gold refinery to gain more value from the resource
Ghana, Africa’s largest gold producer, has inaugurated its first refinery to extract greater value from its natural resources. The Royal Ghana Gold Refinery is set to refine 400 kilograms of gold daily, primarily sourcing its raw material from artisanal and small-scale mines, which officially contribute to one-third of Ghana’s annual output of approximately 4 million ounces.
Our thoughts
This has been a long time coming but we are here for it. The next step is Ghana will be securing international certifications, this will open the country up to new market and a possibility of strengthening the economy. We wish them success.
Nigerian News: CBN injects N700 billion bailout in Unity Bank-Providus Bank merger
Nigeria’s Central Bank approved a financial package worth N700 billion to support the proposed merger between Unity Bank Plc and Providus Bank Limited. According to the apex bank, the bailout is aimed at strengthening the stability of Nigeria’s financial system, as confirmed in an official letter from the CBN, which detailed the terms and structure of the financial accommodation.
Our thoughts
From a capital perspective
Not a bad deal.
Basically, Providus bank will be taking over Unity bank without the extra luggage of negative capital
The structure
CBN will give 700 billion loan for 20 years at MPR -11% (if you have been reading you will know what MPR is) The loan will be for 20 years but they won't need to pay interest for the first five years (that is what moratorium mean)
About half of it will be used to bring Unity bank’s capital to zero (it has had negative capital of 303 billion) Wawu!
The balance will be invested in government securities and count as capital
What does Providus Bank get?
All of Unity Bank assets, its northern presence, its clients.
The good part is that there is no mention of capital injection to get this deal it all seems like a good deal from a capital/ merger/ growth perspective.
Providus Bank had a southwest regional license with this they automatically have a licensed presence in the north. The challenge we see is culture. Unity bank will somewhat be likened to a local government secretariat and Providus bank is modern and contemporary.
We wish them success!
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