Moody’s upgrade of Ghana confirms the turnaround of the economy – Ahiagbah

The Director of Communications of the New Patriotic Party (NPP), Richard Ahiagbah has said that the recent upgrade of Ghana’s economy by Moody’s is an endorsement of the economic recovery.

He charged the presidential candidate of the National Democratic Congress (NDC) John Dramani Mahama to acknowledge the recovery in the economy and give credit to the government.

In a post on his X platform, Mr Ahiagbah said “Moody’s upgraded Ghana’s credit ratings to Caa2 with a positive outlook for future fiscal stability. This good news confirms the turnaround of the economy, verifiable in the above expectation performance, an average of 5.8% growth in the first & second quarters of 2024

“The NDC and H.E Mahama must take note of this positive news for the economy and acknowledge…Praise when it is due! It’s possible!”

International credit rating agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings to “Caa2” from “Caa3” and “Ca,” respectively, citing extensive debt treatment that has significantly alleviated the government’s financial burdens.

Moody’s upgrade Ghana on Friday October 11.

The “positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF programme,” Moody’s said in a statement.

Last week, the International Monetary Fund staff and officials in Ghana reached an agreement on their third review of the country’s $3 billion loan programme.

In October, more than 90% of Ghana’s bondholders approved a $13 billion debt overhaul, paving way for the gold and cocoa producer to emerge from its near $30 billion debt default in 2022.

Ghana’s debt restructuring is expected to reduce its debt stock by $4.7 billion and provide cash flow relief worth a total of $4.4 billion during the period of the IMF programme, which expires in 2026, the government said in June.

The Ghana Statistical Service (GSS) had said in September that Ghana’s economy grew by 6.9% in the second quarter of 2024, the fastest in five years.

Moody’s also said it expects the country’s debt to keep decreasing, though at a slow pace as the government resumes paying interest and principal on all its debts.

The post Moody’s upgrade of Ghana confirms the turnaround of the economy – Ahiagbah first appeared on 3News.

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