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General News Mon, 10 Oct 2016

Moody's rating is 'an upgrade' - Economist tells Bawumia

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Comment: NDC Rate Upgrade Idiocy

Author:
Kwaku Broni
Date:
2016-10-10 15:26:22
Comment to:
Moody's rating is 'an upgrade' - Economist tells B

Folks Moody's outlook comment of negative to stable on B- or B3 credit rating is not a " Rate upgrade". So Dr. Bawumia is correct. The truth of the matter is the level of interest rate international investors (Banks/others) charge to buy our International Debt. At the moment a B- stable won't move the interest rate needle downward. Mr Tekper should come out and explain things to Ghanaians. All the three major Rating Agencies have Ghana's sovereign Debt at B3. With that rating we are ask to pay 8-12% while Ivory Coast pays 6% or lower. A real rating upgrade will lower our borrowing costs. Dr. Ghasti sounds like a paid town crier.
President Mahama's upgrade excitement is not surprising. When things are bad any little improvement can be propagated as good news. It is an admission that the economy is not doing well, otherwise a" negative to stable " should be treated as a yawn in the scheme of things. All the excitements about rate upgrade looks like the case of an idiotic drunk who is told by his friends that his sobriety is improving and rushes home to tell his wife that he is no more a drunk!

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Kwaku Broni on Oct 10, 2016 15:26
NDC Rate Upgrade Idiocy