"Ghana flouts 3 fiscal thresholds of Market Access Countries"

" \n Ghana, according to the Governor of the Central Bank, Ernest Addison, has flouted three key fiscal thresholds used by the International Community to assess the financial standing of Market Access Countries (MAC). \n \n\n \n Market Access Countries are countries that able to access international capital markets through the issuance of sovereign debt instruments to finance local government expenditures. \n \n\n \n Delivering an alumni lecture at the University of Ghana last Thursday, on the theme \"Pandemic, The Economy and Outlook,\" Dr Addison aside pointing out that Ghana had clearly flouted the acceptable 70 per cent debt-to-GDP threshold with its current 71 per cent debt-to-GDP ratio, drew attention to two other fiscal thresholds flouted by Ghana. \n \n\n \n These according to the Governor are the gross financing needs of MACs which should not exceed 10 per cent of GDP as well as the 45 per cent of GDP threshold for non-resident holdings of the public debt. \n \n\n \n With regards to the gross financing needs of the country, Ghana has well exceeded the benchmark as it financing needs per available data stands at 11.8 per cent and is further projected to reach 16.4 per cent end-2020 by the International Monetary Fund. \n \n\n \n In the case of the non-resident holdings of public debt, the Governor revealed that Ghana had exceeded the threshold by some 14.9 percentage points more, as non-residents holdings of public debt currently stands at 59.9 per cent. \n \n\n \n Speaking further at the event, Dr Addison noted that although external financing requirement as a share of GDP has declined and is within the acceptable thresholds, efforts would need to be put in place to increase buffers to help meet future external obligations. \n \n\n \n Despite having exceeded the three key MAC fiscal thresholds, it poses no threat to the country in the near term as the only downside to it would be the payment of higher coupon rates to demanding foreign investors. \n "

"Ghana flouts 3 fiscal thresholds of Market Access Countries"

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