• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Ghana likely to go for another round of downgrade – Seth Terkper

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
Seth Terkper, Former Finance Minister - norvanreports

Seth Terkper, Former Finance Minister - norvanreports

207
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Ghana likely to go for another round of downgrade – Seth Terkper

Former Minister for Finance, Seth Terkper, has said Ghana is likely to experience another downgrade from credit rating agencies if managers of the economy fail to improve on the country’s present macroeconomic indicators.

Sharing his thoughts on the rising rate of inflation and the economy at large in a zoom meeting with business journalists on Friday, May 13, 2022, the former Finance Minister averred there is the need for managers to “reverse the trend” to avoid another round of downgrade.

Ghana’s credit rating was at the beginning of this year – 2022 – downgraded by Moody’s and Fitch Ratings from ‘B’ to ‘B-‘  and ‘B3 to Caa1’ respectively.

Reasons assigned for the downgrade include;

• difficulty in government addressing its intertwined liquidity and debt challenges

• weak revenue generation which constrains government’s budget flexibility

RelatedPosts

Regular Fiscal Data Publication Key to Having an Effective Fiscal Council, Says Oppong Nkrumah

Finance Ministry Backs New Fiscal Council to Anchor Discipline and Stability

2025 Study: Where High Earners Keep Most of Their Money 

• tight funding conditions on the international markets which has forced government to rely on the costly domestic debt market.

Ghana’s debt-to-GDP since the downgrade continues to be elevated and remain on an upward trajectory even despite government’s recent expenditure rationalisation measures taken in the form of expenditure cuts.

This is evidenced by the government’s inability to achieve its fiscal deficit target set for the first quarter of this year as noted by Mr Terkper during his interaction with the media.

Debt-to-GDP for 2021 per official data, increased to 80.1% but was later revised to 76.6% given the 5.4% GDP growth of the economy in the said year.

However, the former Finance Minister asserts that adding exceptional costs in the banking and energy sectors, the country’s debt soars to between 83% and 85%.

Revenue mobilisation and financing of government’s budget still is a difficulty for the government given the attrition rate of users of the mobile money platforms which is expected to have raised some GHS 6.9bn (now revised downwards to GHS 4.5bn) from the E-Levy.

While still unable to gain access to the international market, government for the past weeks has failed to raise the needed funds from the auction of its short term debt on the domestic market to finance its budget.

Then there is the issue of inflation which has seen its worst performance in the last 18 years rising to as high as 23.6%, making interest rates on government debt securities unattractive to investors, helping to further dampen investor confidence in the economy.

“Despite the reduced expenditure, we are still unable to announce and issue the remaining $2bn of the planned $5bn Eurobond and have a roadshow for it in April which we usually do.

“Financing the budget is becoming a difficulty given the country’s inability to still access the market and hence fall on auctions on the domestic market.

“Ghana is likely to go for another round of downgrade if we don’t reverse the trend with inflation and other macroeconomic indicators, we are likely to get downgraded again,” the former Finance Minister noted.

Source: norvanreports
Tags: credit rating agenciesFormer Minister for FinanceghanaGhana likely to go for another round of downgrade – Seth TerkperSeth Terkper
No Result
View All Result

Highlights

GoldBod Introduces Special Bonus for Licensed Miners

Thomas Partey in Top Form for Black Stars Amid Legal Challenges – GFA 

BoG Tightens Foreign Currency Import and Export Rules to Curb Money Laundering

BoG Reiterates Warning Against Unauthorised Foreign Exchange Transactions

GRA to Tax Cryptocurrency Gains as Authority Prepares Digital Tracking System

 Importers and Exporters Association Decries “Mafiarian” Auctions of Perishable Goods at Ghana’s Ports

Trending

Business

Regular Fiscal Data Publication Key to Having an Effective Fiscal Council, Says Oppong Nkrumah

August 27, 2025

Regular Fiscal Data Publication Key to Having an Effective Fiscal Council, Says Oppong Nkrumah Ranking Member of...

Finance Ministry Backs New Fiscal Council to Anchor Discipline and Stability

August 27, 2025

2025 Study: Where High Earners Keep Most of Their Money 

August 27, 2025

GoldBod Introduces Special Bonus for Licensed Miners

August 27, 2025

Thomas Partey in Top Form for Black Stars Amid Legal Challenges – GFA 

August 27, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.