
Audio By Carbonatix
A former Deputy Information Minister in the Mahama era says the Vice President has been a "disaster" as the head of the economic management team.
Felix Kwakye Ofosu said Dr Mahamudu Bawumia's role in leading the economic management team has been a '"waste of time".
The aspiring MP's comment is in reaction to a recent downgrade by credit rating agency, Moody's, to junk status.
"Moody’s downgrades Ghana again. This time to Caa2.
"Bawumia has been an unmitigated disaster and a complete waste of time as head of the Economic Management Team", he said in a Facebook post on Wednesday.
Earlier this week, rating agency, Moody’s, 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 came after a 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.
He added, “combined, a sharp rise in interest rates, high inflation and a rapidly weakening currency exacerbate the government’s debt challenges”.
Moody's also pointed out that, “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”.
Meanwhile, government has reiterated its commitment to dealing with the current economic challenges, to place the economy back on a sound footing.
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