The Ministry of Finance has accepted the business plan for the first domestic credit rating agency to be established with key market regulators as shareholders.

The institutions have already accepted the proposal and working to get the agency established.

The entities are the National Insurance Commission, the National Pensions Regulatory Authority and the Ghana Stock Exchange (the majority shareholder).

The move which is backed by the World Bank will improve credibility of corporate bond issuers as well as businesses that participate on the GSE.

Head of Fixed Income Market at the Ghana Stock Exchange, Augustine Simons, explained to selected Journalists that this is very critical to the promotion of investments on the capital market.

Early this year, the GSE announced that it will establish a domestic credit rating agency for the capital market in Ghana by the middle of the year.

The agency is expected to rank bonds according to their value in order to bring some confidence and comfort to investors.

Giving an update of the work done so far, the Head of the Fixed Income Market said the three market regulators have accepted proposal to hold stake in the agency.

“Work is progressing steadily and I must say that the three agencies nominated as initial shareholders for the agency, thus, NIC and the GSE have all accepted and made commitments to the establishment”.

“The business plan developed by accounting and auditing Firm, KPMG, has been accepted by the ministry and they’re supporting it fully to ensure that it becomes successful” he said.

He added that the requirement by the Securities and Exchange Commission is what could delay the process since it may request a foreign assistance.

Meanwhile, the Deputy Managing Director of the GSE, Abena Amoah, says the GSE will be using financial literacy programmes to increase the appetite for investments, among citizens.