We are disappointed in S&P's downgrade of Ghana's credit rating - Finance Ministry

Ken Ofori Atta Ken Ofori Atta Finance Minister1212 Finance Minister, Ken Ofori-Atta

Mon, 8 Aug 2022 Source: www.ghanaweb.com

The Ministry of Finance has expressed its disappointment in a recent downgrade of Ghana's credit rating by S&P Global Ratings.

The international rating agency in a statement issued on August 5 pushed Ghana's debt situation further into speculative territory, lowering its foreign and local currency sovereign ratings to CCC+/C from B-/B with a negative outlook.

Reacting to the development, the Ministry of Finance in a statement argued that despite implementing pragmatic policies, revisions and other measures in the 2022 budget, ongoing global external developments have significantly impacted Ghana’s economy.

“The Government is disappointed by S&P’s decision to downgrade Ghana despite the bold policies implemented in 2022 to address macro-fiscal challenges and debt sustainability which have been significantly exacerbated by the impact of these global external shocks on the economy.”

“Government has implemented key revenue and expenditure measures, including the 30% cut in discretionary expenditures. The delays in the passage of key revenue measures introduced in the 2022 Budget affected revenues performance in the first half of the year.

However, all the revenue measures introduced in the 2022 Budget, including the review of the MDA Fees and Charges Bill, the Tax Exemption Bill, the E-Levy Bill, have all now been promulgated by Parliament,” the statement explained.

It further pointed out these fiscal measures are now in full implementation mode to support the country's fiscal and debt sustainability policies.

The Ministry however assured that government remains committed and confident in addressing the current economic challenges in the shortest possible time.

“Our current engagement with the International Monetary Fund for a programme, incorporating our Enhanced Domestic Program (EDP), is expected to support our drive to restore and sustain macroeconomic stability; debt sustainability and promote growth and job creation whilst ensuring social protection to achieve our vision of a Ghana Beyond Aid”, it concluded.

Meanwhile, the current downgrade by S&P Global Ratings further threatens Ghana’s debt sustainability efforts, with many investors demanding a higher credit risk premium.

The downgrade will further increase the country’s cost of borrowing and servicing existing debts.

Read the statement from the Finance Ministry below:


Source: www.ghanaweb.com
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