A Higher Credit Rating Will Grant Ghana Better Access to Int. Capital Markets

The Chief Executive Officer of Dalex Finance, Joe Jackson, has urged the government to continue with its expenditure cuts in order to maintain and improve the recent positive credit rating issued by Moody’s.

Ghana’s progress in debt restructuring and fiscal consolidation efforts has been reflected in the credit rating agency’s recent upgrade of the country’s long-term ratings for issuers in both local and foreign currencies. The rating for the local currency was changed from “Caa3” to “Caa2,” and the rating for the foreign currency was changed from “Ca” to “Ca.”

Ghana’s successful completion of an extensive restructuring of its external debt, which relieved the government of significant financial burdens, is credited with this improvement.

Joe Jackson has subsequently urged government to be reasonable in its spending to keep up with the positive rating.

Joe Jackson offered the following advice:

‘‘All we call for is this, that this government, the power that be, those doing the right thing, curbing expenditure, staying within budget, will continue to do so even though this is an election year, so that we can continue to maintain the gains we have made and move forward”.

Moody’s noted that the country’s financial stability has improved as a result of this debt treatment.

The rating organization refered to worked on financial execution in the space of monetary discipline, reducing spending plan shortfalls and upgrading obligation maintainability.

In addition, resilience in the face of economic challenges, positive policy reforms aimed at enhance business competitiveness, and attract investment and robust financial sector.

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Joe Jackson said that because Moody’s upgraded Ghana’s credit rating from Caa3 to Caa2 on its credit report, the country might be able to take advantage of lower interest rates on international capital markets, more foreign direct investment, increased trust in Ghana’s economy, and easier access to financing.

‘‘The upgrade signals that Ghana is taking steps to come out of the pit that we were in, in 2022. When we were downgraded, failed to pay our debts, unable to negotiate and the country was in a really bad economic crisis. The Moody’s upgrade signals that we are taking the baby steps out. We have renegotiated with all creditors, we have started on the road to recovery’’, Joe Jackson said.

Ghana will have easier access to international capital markets and other sources of financing if its credit rating is raised.

Credit: 3News