Audio By Carbonatix
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
-
Ghana Airways restoration key to national pride and economic reset – Ablakwa
25 minutes -
US seizes second oil tanker off Venezuela’s coast
34 minutes -
Australian PM announces intelligence review as country mourns Bondi attack
44 minutes -
Imran Khan and wife given further jail terms after state gift fraud case
45 minutes -
5 perish in fatal collision on Cape Coast–Takoradi Highway
56 minutes -
Poultry imports driving egg glut – GAPFA
1 hour -
Legal lifeline for Ghanaians in America as lawyers association, Embassy move to tackle diaspora challenges
2 hours -
Photos: First Atlantic Bank PLC officially listed on Ghana Stock Exchange
3 hours -
Energy minister assures stable power as Ghana hits peak demand in December
3 hours -
Miguel Ribeiro Fiifi Brandful
3 hours -
Adom TV’s ‘Nine Lessons and Carols’ electrifies National Theatre in a festive extravaganza
4 hours -
Mahama orders $78m payment to Justmoh to resume Agona–Nkwanta road works
4 hours -
Christmas rush deepens traffic woes in Accra Central
4 hours -
Three arrested after viral video shows toddler being fed alcohol
4 hours -
Survivors ‘nervous and sceptical’ about release of remaining Epstein files
5 hours
