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Ghana’s long-term local and foreign currency issuer ratings have been improved by international credit rating agency Moody’s to “Caa2” from “Caa3” and “Ca,” respectively. The upgrading is attributed to comprehensive debt treatment that has greatly reduced the government’s financial responsibilities.
Ghana was upgraded by Moody’s on Friday, October 11.
Additionally, the agency changed the West African nation’s outlook from “stable” to “positive.”
According to a statement from Moody’s, the “positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF program.”
Ghanaian authorities and personnel of the International Monetary Fund came to an agreement last week over their third assessment of the $3 billion loan program in the country.
Ghana’s gold and cocoa exporter will be able to emerge from its almost $30 billion debt default in 2022 after more than 90% of bondholders agreed a $13 billion debt restructure in October.
According to the government’s June statement, Ghana’s debt restructuring is anticipated to lower its debt stock by $4.7 billion and offer cash flow relief totaling $4.4 billion over the course of the IMF program, which ends in 2026.
Ghana’s economy expanded by 6.9% in the second quarter of 2024, the highest rate in five years, according to the GSS, which was released in September.
Additionally, Moody’s stated that it anticipates the nation’s debt to continue declining, albeit slowly, as long as the government continues to make interest and principal payments on all of its loans.
Source: Ghanatodayonline.com
