• VIDEOS
  • About
  • Contact
  • Despite Media
Ghana Election 2020
  • Home
  • Election 2020 Results
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • VIDEOS
  • Media
    • Videos
    • Audio
    • Photos
Local News
 
 
 
Home Business Business News 201303

Fitch Threatens Downgrading Ghana

08-Mar-2013
/ Business News, Business
Email
Print
Comments 0
(0)
Comments
Share on Facebook Share on Twitter
 

Global rating agency Fitch has stated that it could downgrade Ghana’s credit worthiness soon because government’s strategies, which were recently outlined in the 2013 Budget Statement, were unlikely to address the 2012 budget deficit.

Government noted in the budget statement that it would reduce the deficit to about 9 percent of GDP and lessen it for the next three years, but Fitch expects Government to close the gap to 8 percent and 5 percent next year.

The deficit skyrocketed last year from a revised estimate of 6.7 percent in July.

The rating is four levels below investment grade, Carmen Altenkirch, a London-based sovereign analyst at Fitch revealed.

“Failure to stick to the budget’s less-than-ambitious fiscal consolidation plan will further increase concerns about Ghana’s long-term creditworthiness.”

Ms Altenkirch further noted: “Failure to set out and implement a credible consolidation plan and improve expenditure control could lead to a downgrade.”

In an e-mailed note to Bloomberg recently, Fitch placed a negative outlook on Ghana’s credit rating last month, indicating a cut on the rating may happen if fiscal conditions don’t improve.

Increases in government salaries, higher interest costs to pay debt and spending ahead of December elections eroded the government’s ability to narrow the deficit, Fitch said.

On government’s debt which rose from 40 percent during the start of 2012 to 49 percent by the close of the year, the renowned rating agency said if fiscal consolidation does not take place, “the debt situation will continue to worsen” and spell difficulties for the economy.

Ghana’s credit outlook has been revised from positive to negative except its credit rating which stands at B+. This means Ghana in the next few months might not be able to honour its debt obligations.

In September last year, Fitch acknowledged Ghana’s good governance record and favourable business environment as factors underpinning the country’s B+ rating.

It affirmed the country’s long-term foreign and local currency Issuer Default Ratings (IDR) at B+ with a stable outlook and short-term foreign currency IDR at B.

The agency has also affirmed the country ceiling at B+.
Fitch Ratings, which forecast Ghana’s growth at an average of 8.6 per cent over the next three years, projected the country’s growth to be boosted by rising oil production and its positive spillover effects on the economy, as well as infrastructure spending but strategies outlined by Government in the 2013 Budget have made the agency doubtful of Ghana’s ability to reduce the deficit.


Source: Samuel Boadi/D-Guide

 

 
 

 

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video
Previous Post

Oil Firms Still Don't Pay Corporate Tax

Next Post

AGI, Kaizen Institute organise training for service industries

 
 

More Stories

Focus More On Agric Sector Investment To Improve Economy – Dr Sarkodie
Study: More Than Half Of German Firms Expect Skilled Labour Shortage
BoG To Arrest Cedi’s Depreciation With US$775m Injection
Fidelity Bank Ghana Relocates Two Branches; Merges Two Branches
MTN Ghana Awards Momo Agents and Merchants
FDA To Harmonize Importer TIN And Product Registration Numbers
Standard Chartered Holds First Draw Of Season Of Surprises Campaign
Cape Coast Being Marketed In Germany - PHOTO
Price Of Eggs Goes Up
Next Post

AGI, Kaizen Institute organise training for service industries

  Ghana Business News

  • General News
  • Economy
  • Banking & Finance
  • Stock Market
  • Industry/Manufacturing


 
 

Other Business News Stories

  • Focus More On Agric Sector Investment To Improve Economy – Dr Sarkodie

  • Study: More Than Half Of German Firms Expect Skilled Labour Shortage

  • BoG To Arrest Cedi’s Depreciation With US$775m Injection

  • Fidelity Bank Ghana Relocates Two Branches; Merges Two Branches

  • MTN Ghana Awards Momo Agents and Merchants

  • FDA To Harmonize Importer TIN And Product Registration Numbers

  • Standard Chartered Holds First Draw Of Season Of Surprises Campaign

  • Cape Coast Being Marketed In Germany - PHOTO

  • Price Of Eggs Goes Up

  • Registrar-General: Make Transactional Payments In Bank’s Draft

 

 
 

Popular Videos

Mark My Words; Mahama Will Discontinue The Case If… - Nana B

Your Response To Keche Was Childish - Mzbel Scolds Wendy Shay

Provision Of PPEs: You Can Close Down Schools...But Leave Us Out - Private Schools To GES

Election Petition: Maurice Ampaw’s Reaction

Prez Nana Addo Will Name His Minsters This Week – KON Hints

NDC Makes Another Mistake In Their Corrected Petition – Nana B

Peace FM Online and Despite Media

peacefmonline.com offers its reading audience with a comprehensive online source for up-to-the-minute news about politics, business, entertainment and other issues in Ghana

Follow us on social media:

Category

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • Trivia
  • Foreign
  • Audio
  • Photos
  • Videos
  • Elections
Decision Time
Ghana Election 2020 2016 Elections
Services
Online Radio Audio on Demand Ghana Elections Advertise with Us
Useful Links
Despite Media About Us Contact Us Feedback Form Terms and Conditions Privacy
Our Brands
Despite Media UTV Peace FM Okay FM Hello FM Neat FM Peacefmonline
  • About
  • Advertise
  • Terms & Conditions
  • Contact
  • Privacy

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Articles
  • Trivia
  • Foreign
  • Photos
  • Videos
  • Audio
  • Election 2020

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media