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.