Ratings agencies wanted Ghana to return to IMF – Toma Imihere

Economy & Investments Ratings agencies wanted Ghana to return to IMF – Toma Imihere
AUG 9, 2022 LISTEN

Toma Imihere believes Ghana had no chance of getting favourable outlook from rating agencies because of an overall desire to see Ghana return to the International Monetary Fund (IMF).

Speaking on The Point of View, Mr. Imihere said, “they were deliberately pushing Ghana into a situation where we would have to go back to the IMF.”

He was remarking on Standard and Poor's (S&P) global ratings downgrading of Ghana's foreign and local credit ratings from B-B' to CCC+C with a negative economic outlook.

Before this, Fitch had downgraded Ghana's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B-' from 'B' and the outlook was negative.

Moody's Investors Service (Moody's) downgraded Ghana's long-term issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook to stable from negative.

Mr. Imihere said the ratings agencies “want to protect the interest of their clients in making sure Ghana does not go over the top.”

“I believe that because we are not getting our economic priorities right, I think we have lost the plot since Covid-19 came,” he added.

Mr. Imihere noted that S&P’s rating, which came after the mid-year budget review, was further proof of Ghana’s struggles.

“After Ghana has still announced all its austerity measures, Standards & Poor’s effectively comes and supports what Fitch and Moody’s are saying”.