The Executive Director, Revenue Mobilisation Africa, tax expert Mr. Geoffrey Kabutey Ocansey, has reacted to the latest Moody’s rating, which has moved Ghana from a stable condition to a positive outlook.
He posited that Ghana’s poor performance and ratings can be attributed to excessive corruption and mismanagement.
Global credit ratings agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings, raising them to ‘Caa2’ from previous levels of ‘Caa3’ and ‘Ca.’
The new figure according to the agency was driven by the country’s extensive debt restructuring, which has eased the government’s financial pressures.
Moody’s also revised Ghana’s outlook from stable’ to ‘positive,’ citing the prospect of additional reductions in liquidity vulnerabilities.
The ‘positive outlook reflects the potential for liquidity risk to ease with ongoing fiscal austerity efforts supported by an IMF program,’ Moody’s said in a statement on Friday.
This comes as Ghana continues its fiscal austerity measures, which are backed by an IMF credit program worth $3 billion.
Speaking in an interview on Frontline on Rainbow Radio 87.5FM, he advised that we stay away from the things that led us to be downgraded by Moody’s and the other rating agencies.
He highlighted the nation’s propensity for securing loans beyond its repayment capacity, which were misallocated and not utilized for strategic investments. The borrowed funds were not channeled into productive endeavors, further compounded by rampant corruption and unnecessary expenditures, yielding substantial outlays with minimal returns. Given our upgraded economic standing, it is imperative that we exercise prudence and streamline unnecessary spending. We must maintain fiscal discipline, recognizing that our economic growth is attributable to our collective efforts, IMF support, and successful debt restructuring agreements with the Official Creditor Committee and Eurobond holders.
He stated that the $7.2 billion debt relief secured between 2023 and 2026, following the successful conclusion of debt restructuring negotiations with bilateral creditors and Eurobond holders, was instrumental in achieving this upgraded rating.
He underscored the importance of the positive ratings as a reflection of the economy’s present condition, stressing that authorities must preserve fiscal discipline to ensure sustainability.
By: Rainbowradioonline.com/Ghana