"Return to Capital Market to take 2-3 years; Gov\u2019t to use period to work on \u201cjunk status\u201d rating \u2013 Ken Ofori-Atta"

" \n Return to Capital Market to take 2-3 years; Gov\u2019t to use period to work on \u201cjunk status\u201d rating \u2013 Ken Ofori-Atta \n \n\n \n Ghana\u2019s return to the capital markets to acres long term loans will take some two to three years according to the Minister for Finance, Ken Ofori-Atta. \n \n\n \n The Finance Minister, speaking at a press briefing on Wednesday, September 28, noted the government will use the two to three year waiting period to work on the economy so as to get more favourable ratings from the three traditional credit rating agencies \u2013 Moody\u2019s, Fitch and S&P. \n \n\n \n \u201cOnce we got downgraded to triple C, we are also expecting that economic programme that is being worked on which will be the basis for the IMF discussions would help us to come back to some strong matrices so that we will be able to get some ratings revised over that period. \n \n\n \n \u201cWe are confident that returning some sort of access to the capital markets is going to take some time, two to three years and so during that period we will work on our ratings also to be able to get back,\u201d he noted. \n \n\n \n Expressing disappointment over the recent downgrade of Ghana\u2019s Long Term IDR to \u201cCC\u201d by Fitch Ratings, the Finance Minister averred the rating action further depresses the country\u2019s bonds on the international market. \n \n\n \n \u201cThe issue of Fitch downgrade is unfortunate. In their email to us, they referred to the Bloomberg article that influenced their decision. It sort of further depresses the bonds on the international market and results in additional losses to investors,\" he remarked. \n \n\n \n This is the second time in 2022 that the rating agency has downgraded Ghana\u2019s creditworthiness. \n \n\n \n The \u201cCC\u201d downgrade by Fitch Ratings reflects the increased the increased likelihood that Ghana will pursue a debt restructuring given mounting financing stress, with surging interest costs on domestic debt and a prolonged lack of access to Eurobond markets. \n \n\n \n Meanwhile, the Finance Minister has stated that negotiations with the IMF for a programme will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Budget Statement. \n \n\n \n \u201cThe formal negotiations for a Fund-supported programme began on Monday September 26th, 2022 and discussions are advancing smoothly. \n \n\n \n \u201cThe IMF Mission will cover a period of 10 days; and in line with the president\u2019s dialogue with the IMF managing director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022\u201d \n \n\n \n \u201cGovernment is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection,\u201d\u00a0 the Minister stated. \n \n\n \n The 2023 Budget Statement is expected to be presented to Parliament in November this year. \n "

"Return to Capital Market to take 2-3 years; Gov\u2019t to use period to work on \u201cjunk status\u201d rating \u2013 Ken Ofori-Atta"

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