International ratings agency, Fitch, has downgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘B’ with a negative outlook.
The downgrade of Ghana’s IDRs and Negative Outlook reflect the sovereign’s loss of access to international capital markets in the second-half of 2021, following a pandemic-related [COVID-19] surge in government debt.
Fitch in a report said “this comes in the context of uncertainty about the government’s ability to stabilise debt and against a backdrop of tightening global financing conditions. In our view, Ghana’s ability to deliver on planned fiscal consolidation efforts could be hindered by the heavier reliance on domestic debt issuance with higher interest costs, in the context of an already exceptionally high interest expenditure to revenue ratio.”
On PM Express Business Edition, host George Wiafe was joined by CEO and Co-Founder of C-Energy Global Holdings and Investment Analyst, Mike Cobblah and Economist and Associate Professor at ISSER, Professor Robert Osei to discuss the implications of the downgrade.
Latest Stories
-
Bahamas World Relays: Ghana paired with world and Olympic champions in Heat 1
5 hours -
Bahamas 2024 Relays: Star-studded cast ready to put on pre-Paris show
5 hours -
Bahamas Relays preview: clash of global title-winning teams in men’s 4x100m
6 hours -
Arsenal keeper Raya wins Premier League Golden Glove
6 hours -
Iñaki Williams scores twice in Athletic Bilbao’s win over Getafe
6 hours -
Argument with Salah ‘completely resolved’ – Klopp
6 hours -
Reus to leave Dortmund at the end of the season
7 hours -
Uefa confirms 26-man squads for Euro 2024
7 hours -
Teacher Unions press home demands for the new allowances
7 hours -
Media’s failure to hold government accountable for ‘galamsey’ alarming – Mahama
7 hours -
Keta Presbytery urges Akufo-Addo to assent to anti-LGBTQ+ Bill
7 hours -
Ghanaian midfielder Lawrence Ofori nets maiden goal of the season with stunner against Vizela
7 hours -
Community fearful after off-duty policemen shot dead at East Trasacco
7 hours -
Dext Technology partners KNUST to train basic school teachers on STEM
7 hours -
My efforts led to remarkable transformation in Appiatse – Lands Minister
7 hours