Finance Minister Seth Terkper is optimistic recent revision of Ghana\u2019s Long Term Bond Ratings from negative to stable by international Credit Ratings Agency, Moody\u2019s \u00a0will influence Ghana\u2019s economic outlook.<\/p>\n
Moody\u2019s, in its recent economic report of Ghana defined the economic outlook as positive, affirming the rating at B3.<\/p>\n
The report cited significant fiscal deficit reduction and success in implementing structural reforms over the past year, as well as reduction in government liquidity risk on the external side.<\/p>\n
The agency pointed out that the \u00a0proceeds of the US$750m Eurobond earmarked \u00a0for debt repayments\u00a0 is part \u00a0of the key drivers for the stabilization of the rating.<\/p>\n
Other reasons cited for the revision were improved balance of payments dynamics, including improved FDI inflows and continued development of oil and gas resources.<\/p>\n
Speaking to Citi Business News<\/strong> in reaction to the report, Mr. Terkper was hopeful other credit ratings will also revise their outlooks of Ghana\u2019s economy.<\/p>\n \u201cThe factors that are leading to the upgrade are the IMF programme, the home grown policies and the general performance of the economy as a whole. \u00a0What we have seen is the downgrade stopping, and we remaining at our ratings. We are hopeful that the other rating agencies which also halted the downgrade will also start moving towards a positive rating,\u201d he said.<\/p>\n He was of the view that the ratings reflect the general performance of the economy as government embarks on fiscal consolidation.<\/p>\n He stated that the sacrifices and the dedication of the fiscal team, aimed at practicing \u00a0financial discipline is the result of the ratings.<\/p>\n Assuring that government will not overrun the budget during this election year, Mr. Terkper maintained that the Finance Ministry is keen on following fiscal roadmaps to cut down on over spending.<\/p>\n \u201cSome recommendations that come in the form of criticisms have helped. The idea that in election years we over shoot the budget above 3 percentage points of GDP will stop,\u201d he stressed.<\/p>\n Touching on the impact of Ghana\u2019s external factors, Mr. Terkper was optimistic the rate at which government borrows from the primary and secondary markets will improve.<\/p>\n –<\/p>\n By: Lawrence Segbefia\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Finance Minister Seth Terkper is optimistic recent revision of Ghana\u2019s Long Term Bond Ratings from negative to stable by international Credit Ratings Agency, Moody\u2019s \u00a0will influence Ghana\u2019s economic outlook. Moody\u2019s, in its recent economic report of Ghana defined the economic outlook as positive, affirming the rating at B3. The report cited significant fiscal deficit reduction […]<\/p>\n","protected":false},"author":14,"featured_media":247926,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,171],"tags":[],"yoast_head":"\n