Former Finance Minister Seth Terkper is questioning President Akufo-Addo’s rationale for taking on ratings agencies in the wake of the downgrade of Ghana’s economy.
Two leading ratings agencies Moody’s and Fitch earlier in the month of January 2022, downgraded Ghana due to concerns with the rising debt stock of the country.
Ghana’s debt has been rising at worrying spate with increasing interest payment obligations that is swallowing up half of Ghana’s total revenue.
The downgrades mean Ghana would struggle to raise money on the international bond market without unreasonably high interest rates.
The downgrades have incurred the chagrin of the President of Ghana Nana Addo Dankwa Akufo-Addo who feels the move was unfair as Ghana suffered economic decline in the wake of the COVID pandemic.
President Nana Akufo-Addo who is Chairman of ECOWAS, used an extraordinary session of the Community to rally support of his colleague African Heads of State against the ratings agencies.
But Seth Terkper who managed Ghana’s economy from 2013 to 2016 says President Akufo-Addo’s call is unnecessary.
He wondered whether the President was asking for the establishment of a mediocre ratings agency.
Story: Sena Nombo/Radiogoldlive.com
