Former President, John Mahama has once again lamented the country’s economic woes.
Mr. Mahama in a Twitter post on Tuesday noted that the economic situation is “distressing” and getting worse by the day.
The NDC flagbearer for the 2020 elections called on the government to, promptly and with eagerness, secure a programme from the IMF to stabilize the country’s economy.
“Distressing! Every passing day makes our economic situation worse. Gov’t must work with greater alacrity to lock in a programme with the Fund in order to create a more predictable economic outlook,” John Mahama tweeted on Tuesday.
Distressing! Every passing day makes our economic situation worse. Gov’t must work with greater alacrity to lock in a programme with the Fund in order to create a more predictable economic outlook.
— John Dramani Mahama (@JDMahama) October 4, 2022
Meanwhile, Rating agency, Moody’s has downgraded Ghana’s long-term issuer and senior unsecured debt ratings to CAA2 from CAA1 and placed the ratings on review for downgrade.
The rating downgrade to CAA2, it said, reflects the recent macroeconomic deterioration, further heightening the government’s liquidity and debt sustainability difficulties and increasing the risk of default.
This follows the recent downgrade of Ghana’s credit rating to ‘CC’ from ‘CCC’ by Fitch.
Despite Ghana’s tightening of monetary policy in response to the global price shock, it said inflation continues to rise from high levels and the currency has been under very significant pressure, adding, “combined, a sharp rise in interest rates, high inflation and a rapidly weakening currency exacerbate the government’s debt challenges”.
“Without external support, the government’s policy levers to arrest a worsening macroeconomic backdrop and heavier debt burden are extremely limited; the government’s small revenue base, largely and increasingly absorbed by interest payments, further intensifies the policy dilemma between competing objectives, including servicing debt while meeting essential social needs. As a result, the risk of an eventual default has increased”, it pointed out.
Government is currently in negotiations with a team from the Fund to secure a programme.
Latest Stories
-
Chelsea trigger Delap’s £30m release clause
31 minutes -
Arsenal in advanced contract talks with Gabriel
43 minutes -
Di Maria to return to boyhood club despite previous threats
1 hour -
Man Utd’s Amad makes obscene gesture after ‘personal abuse’
1 hour -
Over 75% of people in 17 countries support cutting methane emissions – Global Survey finds
1 hour -
GES boss commissions Smart Classrooms at Opoku Ware SHS to boost digital learning
1 hour -
Judge blocks Trump’s effort to restrict foreign students at Harvard – for now
2 hours -
UN Peacekeeper Day: Championing partnership, shaping a peaceful future
2 hours -
Two rising visual storytellers win maiden TGMA’s Creators Challenge
2 hours -
Bright Simons: When the president’s brother sues you
2 hours -
FDA embarks on anti-tobacco campaign in Ho
2 hours -
Andrew and Tristan Tate will return to UK to face charges, lawyers say
3 hours -
Chinese students find themselves caught in the US-China crossfire – again
3 hours -
One person killed after fuel tanker collides with truck in Kintampo
3 hours -
Cedi’s strength isn’t enough, businesses want predictability, says John Awuah
3 hours