Audio By Carbonatix
Deputy Finance Minister, John Kumah, says Ghanaians should not pay attention to what he calls negative propaganda put out by rating agency Moody’s.
In a scathing attack launched on the agency, Mr Kumah questioned whether someone who sits behind a computer can issue an accurate report.
“On January 22, they appointed the lead Ghana analyst one Villa Lucie who has never travelled to Ghana before. So you sit before your desktop and look at your documents and downgrade a country without physically engaging the people?” he quizzed on Joy News' AM Show, Monday.
Moody’s, in its latest report, downgraded Ghana’s bond ratings from a B3 to Caa1.
It justified the downgrade by pointing out liquidity and debt challenges and pandemic induced revenue underperformance. The Finance Ministry on February 6 issued a statement serving notice of appealing the rating.
The Finance Ministry says the agency omitted key material information and failed to defer such rating despite appointing an analyst for Ghana just four weeks ago.
Mr Kumah said Ghana cannot be downgraded simply because it has overspent amid Covid-19.
“Which country in the world has not overspent because of covid? It is just hypocritical, and I don’t think we should give attention to this kind of hypocritical propaganda against African countries.”
Two economists who joined the discussion on AM show, however disagreed. Prof Lord Mensah of the University of Ghana Business School and Economist Dr Patrick Assuming.
“The reaction from the government circles is quite unfortunate. These agencies don’t change their modules. They don’t change their grading because it's Covid-19,“ Prof Mensah said.
“I thought that the Moody’s rating was quite magnanimous to government. I am quite surprised at the reaction of the Deputy Finance Minister. I don’t think there is much to dispute,” Dr Assuming said
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