"Fitch’s Liquidity Challenges Projection for Ghana Inaccurate

" Fitch's Liquidity Challenges Projection for Ghana Inaccurate - Dr Assibey-Yeboah \r\n\r\nFormer Chairman of the Parliamentary Finance Committee, Dr. Mark Assibey-Yeboah, has dismissed Fitch Ratings\u2019 warnings of liquidity challenges for Ghana in 2025 and 2026 as inaccurate.\r\n\r\nSpeaking on Joy News' PM Express on November 27, 2024, Dr. Assibey-Yeboah argued that Fitch\u2019s analysis overlooks critical developments, such as the debt savings from Ghana\u2019s external debt restructuring.\r\n\r\n\"We are actually going to get some savings from the external debt restructuring, which will provide us with some fiscal space, and so that account is not entirely accurate,\" he said, referencing the estimated $8 billion in debt relief.\r\n\r\nFitch Ratings has stated that Ghana will face persistent liquidity challenges in 2025 and 2026, despite its progress in external debt restructuring.\r\n\r\nThe UK-based credit rating agency projects that the country\u2019s interest-to-revenue ratio will remain exceptionally high, reaching 29% in 2025 and 30% in 2026\u2014nearly double the emerging market average of 16%.\r\n\r\nThomas Garreau, Associate Director of EMEA Sovereign Ratings at Fitch, stressed the need for urgent fiscal reforms.\r\n\r\n\"We do consider that Ghana will still face significant liquidity pressures,\" he said, adding that despite Ghana\u2019s strides in fiscal consolidation, such as a 4.6 percentage-point primary fiscal adjustment between 2022 and 2024, further drastic measures are needed.\r\n\r\nMeanwhile, Fitch has projected Ghana\u2019s exit from sovereign default by July 2025, contingent on completing external debt restructuring by June 2025.\r\n\r\nWhile this signals a potential recovery, the agency cautioned that sustained fiscal discipline and comprehensive economic strategies will be essential to mitigate liquidity risks.\r\n\r\nThe divergence in views between Ghanaian officials and Fitch Ratings underscores the complexities of navigating the country\u2019s economic recovery, as stakeholders debate the extent of fiscal progress and the measures needed to ensure long-term stability."

"Fitch’s Liquidity Challenges Projection for Ghana Inaccurate

BoG Slashes Policy Rate by 300 Basis Points to 25% on Easing Inflation PressuresAMP

National Security Picks Up 3 Officials of McDan Group Following Warehouse DemolitionAMP

Court of Appeal Grants GH¢10m Bail to Defunct Capital Bank CEO Ato Essien Amid Health ConcernsAMP