Ghana's return to the International Capital Market may not materialise anytime soon due to the negative impact of downgrades on its economy by international rating agencies, Finance Minister, Ken Ofori-Atta has lamented.
The three rating agencies, Fitch, Moody's and Standard & Poor's have all downgraded the country's credit worthiness to junk status.
According to him, the government needs to work on its current economic downgrade and other fiscal measures in order to have easy access to the market.
“Returning to the International Capital Market is going to take a bit of time. It will take about two to three years before we can be able to work on our ratings before that time. The recent downgrade is very unfortunate”, he said.
He was speaking at a press conference on the state of Ghana’s economy on September 28, 2022.
Ghana has been out of the international market due to various unfavorable economic conditions occasioned by a weak local currency and high debt levels.
According to Mr. Ofori-Atta, the current downgrade of the country's rating by some international ratings agencies - Fitch, Moody's, and Standard and Poor's will be reversed through policy measures in the next few years, preparing the grounds for Ghana to go back to the International Capital Market.
He maintained that it will be prudent for managers of the economy to critically assess the economic situation before returning to the capital market in the next two or three years to avoid high coupon rates.
Giving his opinion on the recent downgrade of Ghana’s economic status by Fitch, Mr. Ofori-Atta described the move as very unfortunate and likely to have an adverse effect on Ghana’s bond market.
He criticised a recent Bloomberg story suggesting that Ghana is going to restructure its domestic debt as the reason behind the recent downgrade of the country's credit rating by Fitch.
With Ghana currently in talks with the International Monetary Fund, the Finance Minister is hopeful a deal will be closed to restore investor confidence in the economy.
Again, he wants the deal to be finalised before the next budget (2023) presentation in November 2022.
Latest Stories
-
Stampede in southwestern Nigerian city causes multiple deaths
9 minutes -
Tens of thousands without water in Mayotte as curfew brought in
23 minutes -
ORAL: We won’t witch-hunt, we’ll focus on transparency, not revenge – Ablakwa
46 minutes -
Attempted robbery: Accused claims he carried cutlass for protection
1 hour -
Excavator operator jailed for stealing
1 hour -
African fans age-shame me for putting on some outfits – Tiwa Savage
1 hour -
Tiwa Savage criticised by female fans for stance on cheating in relationships
2 hours -
Embattled Liberian speaker questioned by police over parliament fire
3 hours -
‘I won’t be a judge in my own court; ORAL is about protecting public purse’ – Ablakwa
3 hours -
Bawumia joins thousands in Kumasi for burial prayers for Ashanti Regional Imam
4 hours -
Blue Gold Bogoso Prestea Limited challenges government actions in court
4 hours -
Verdicts due for 51 men in Pelicot mass rape trial that shook France
4 hours -
Syria not a threat to world, rebel leader Ahmed al-Sharaa tells BBC
4 hours -
Patrick Atangana Fouda: ‘A hero of the fight against HIV leaves us’
5 hours -
Trinity Oil MD Gabriel Kumi elected Board Chairman of Chamber of Oil Marketing Companies
5 hours