The Ministry of Finance expects an improved credit rating to increase engagement with external creditors
The Ministry of Finance said it expects an improvement in the local currency of Ghana’s credit rating of the country to increase its engagement with external creditors in the treatment of its debt.
This comes after S&P Global Ratings on Friday, February 24, 2023, raised Ghana’s local currency credit rating from selective standard (SD) to ‘CCC /C’.
“This recognizes the completion of the Domestic Debt Exchange Program by successfully delivering new securities to bondholders. By doing this, selective defaults can be cured,” the Ministry said in a press release.
It reaffirmed the important role of external creditors for the long-term macroeconomic stability of the country, saying “The Government of Ghana is taking this opportunity to assure external creditors that the Republic of Ghana is equal.
“Thus, we will continue to work together to promote progress in the treatment of external debt. “
The results of the Government Debt Sustainability Analysis (DSA) with recommendations from the International Monetary Fund (IMF) show that the country’s public debt, external and domestic, is not sustainable.
In this regard, the Ministry of Finance on December 19, 2022, announced the suspension of all debt service payments in certain external debt categories, pending the orderly restructuring of the affected obligations.
This suspension includes payments in Eurobonds; commercial term credit; and most bilateral debt.
However, it does not include repayment of multilateral debt, new debt (whether multilateral or otherwise) contracted after December 19, 2022, or debt related to certain short-term trade facilities.
https://www.youtube.com/watch?v=/POKJdl561zo
The post Ministry of Finance expects better credit rating to increase engagement with external lenders appeared first on Citinewsroom – Comprehensive News in Ghana.
Read the Full Story
Advertise Here contact advertisement[@]ghheadlines.com