Business in Ghana

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Posts Tagged ‘Fitch Ratings’

Fitch Warns Ghana On New Eurobond

Posted by Business in Ghana on June 10, 2014

By Sudip Roy, FT

Fitch has warned that Ghana will find it “increasingly challenging” to sell its new Eurobond due to mounting fiscal and external vulnerabilities.

The West African nation is rumoured to have hired Barclays, Deutsche Bank and Standard Chartered for an up to US$1.5bn Eurobond, though the timing of the deal has yet to be determined.

A successful deal may ease immediate external funding pressures. But even though Ghana, as with other emerging markets, has seen its outstanding debt rally significantly over the past few weeks with its 2023 notes trading at just under 8% compared with more than 9% at the end of April, Fitch reckons the cost of any bond “would likely be high.”

The ratings agency has highlighted the country’s vulnerabilities in a new note published on Monday, especially the central bank’s role in funding Ghana’s budget deficit in the first quarter.

“Printing money to finance the deficit will aggravate already high inflation (14.7% in April 2014) and contribute to further cedi weakness,” said the note, adding the currency has fallen 21% since the start of the year. Read the rest of this entry »

Posted in Financial Services, Uncategorized | Tagged: , , , , , | Leave a Comment »

Reset. Dog-Ctrl, Fitch-Alt, ECG-Delete. Critical News, 20th October 2013

Posted by Business in Ghana on October 20, 2013

Sydney Casely-Hayford,

I am not the only person complaining.  All week I have been talking to friends, asking what we can do to move some action in Governance.

“Massa asem a to yen”, and this from the taxi driver who bullied me into listening to him all the ride from McCarthy Hill to Kanda Estates.  He had a beef and soon as he recognized me from a TV talk show, he was sure I could influence Government to do something about his struggling efforts to eke out a living from “dropping” fares.

Kwame Karikari now owns his taxi.  It has taken him seven years.  When I did the math with him, he had agreed to a repayment plan, which cost him three times more than what he could have borrowed.  What I gathered, and together with his comments, much regrets.  We the “panyin fuo” should have the answers so them “nkodaa” can tow our lines.

Not anywhere near the collective responsibility being seamed to us by Government, forcing a guilt trap because something went horribly wrong between July and December 2012.  Some uncontrolled hand skewed our prior-to-then economic success trumpeted in Parliament and to the world.

It is important to remind this NDC Government that on Wednesday 18th July 2012, they went to Parliament to report that the economy was so robust they requested supplementary spending for the rest of the year.

Let me quote then Finance Minister Dr. Kwabena Duffuor from paragraph 36 of his presentation on the Supplementary Budget to Parliament.  Bear in mind this is July 2012, a week before President Mills died. Read the rest of this entry »

Posted in Critical Weekly News, Sydney Casely-Hayford | Tagged: , , , , , , , , | Leave a Comment »