Moody’s upgrade of Ghana confirms turnaround in economy – Ahiagbah | Politics

The Director of Communications of the New Patriotic Party (NPP), Richard Ahiagbah, has said the recent upgrade of Ghana’s economy by Moody’s is a show of support for the economic recovery.

He charged the presidential candidate of the National Democratic Congress (NDC) John Dramani Mahama to acknowledge the recovery of the economy and give credit to the government.

In a post on his X platform, Mr Ahiagbah said: “Moody’s has upgraded Ghana’s credit ratings to Caa2 with a positive outlook for future fiscal stability. This good news confirms the turnaround of the economy, verifiable in the above forecast results, an average growth of 5.8% in the first and second quarters of 2024

“The NDC and HE Mahama must take note of this positive news for the economy and acknowledge… Praise when it is due! It’s possible!”

International credit rating agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings to ‘Caa2’ from ‘Caa3’ and ‘Ca’ respectively, citing the comprehensive debt treatment that has significantly eased the government’s financial burden.

Moody’s has upgraded Ghana’s credit ratings to Caa2 with a positive outlook for future fiscal stability. This good news confirms the turnaround of the economy, verifiable in the above forecast results, an average growth of 5.8% in the first and second quarters of 2024

The NDC… pic.twitter.com/70r25vEIti

— Richard Ahiagbah (@RAahiagbah) October 13, 2024

Moody’s upgrade Ghana on Friday, October 11.

The agency also revised the West African country’s outlook to ‘stable’ from ‘positive’.

The “positive outlook reflects the potential for a decline in liquidity risk amid ongoing fiscal consolidation efforts supported by an IMF program,” Moody’s said in a statement.

Last week, International Monetary Fund staff and officials in Ghana agreed on their third review of the country’s $3 billion lending program.

In October, more than 90% of Ghanaian bondholders approved a $13 billion debt restructuring, paving the way for the gold and cocoa producer to emerge from its nearly $30 billion debt burden by 2022.

Ghana’s debt restructuring is expected to reduce debt burden by $4.7 billion and provide cash flow relief worth a total of $4.4 billion over the period of the IMF program, which ends in 2026, the government said in June.

The Ghana Statistical Service (GSS) had said in September that Ghana’s economy grew by 6.9% in the second quarter of 2024, the fastest in five years.

Moody’s also said it expects the country’s debt to continue falling, albeit at a slow pace as the government resumes paying interest and principal on all its debt.