Business in Ghana

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Posts Tagged ‘Moodys’

In A Bad Mood-y. Critical News, 22nd March 2015

Posted by Business in Ghana on March 22, 2015

Sydney Casely-Hayford, sydney@bizghana.com

I was a reluctant walker up McCarthy Hill this morning. Very tired from a late night blitz, after one bottle of Guinness and some “rice and plasas”, I traipsed home to the now inevitable “dumsor” and lived with the gloom of a life I did not ask for but choose to be in.

Tired legs and an aging body, both conspirators in the endless dedication to keep me unhealthy, that I get sick so I might die young, but not till my work on this planet is completed and I move to Mars.

I have great hopes that Mars will be habitable by the time I am too old. It takes 150 days and 55,757,930km to reach, which means I am out even before I start the journey. I can only hope they find me a burial spot there, and since we Africans are not capable of creating an Awudome on that planet, I will have to contend with Arlington cemetery without US Citizenship.

So international rating agency Moody’s has been creating havoc for this government for quite some time. This past week, we have been downgraded from B2 to B3 and classified negative. To the non-financial person on the street, what this means is it will cost us more in interest rates and with tighter conditions if we attempt once again, which we are determined to do in May this year, to borrow another $1billion.

We have bonds falling due. The first is in October this year for $531million and the next two, in 2023 and 2024 for $1billion each. Finance Minister has put forward a refinancing plan to Parliament for approval and a cursory look at the document confirms much of what we say every time. Read the rest of this entry »

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Stealing Our Kra. Critical News, 5th July 2014

Posted by Business in Ghana on July 6, 2014

Sydney Casely-Hayford, sydney@bizghana.com

I am on a morning run to Korle Bu hospital, my sixth run so far to give a basket of fruit to Arnold, a bosom buddy recuperating from minor surgery.  I have come to understand why everything is so underserved in this hospital, stories of horror float in the car park making the trip to the surgical ward one tentative step tripping after the next.

But that is not the story.  Wednesday, I decided to make a detour to avoid the early mortuary road traffic and bypassed through the suburbs of Chorkor.  It has been a while since I went that way and I was intrigued by the change.

I slowed down at “Naa Dede Best Tillapia” to buy credit and Kwei Fio (I only got to know his name later) was hollering, slaps to his backside, his teenage mother bent on marking his butt for life with a leather belt.  It was a bit too much and I stepped out of the car to reprieve (now) my boy and urge Ashikai to hold up a bit.

Well, Kwei Fio was on a “no one cedi, no school” protest and “authority mum” was damned if she would accept this challenge to her parenthood.  She had offered Kwei Fio fifty pesewas but he said the reduced “wage” would dent his toffee-acquiring image at school.

I pleaded, I succeeded and we came to a compromise.  Things were tough, sales were very slow and Ashikai needed her son to give her more time to resolve this.

So I offered to give Kwei Fio’s one cedi a day allowance a bump and help with the regular payments as long as he went to school everyday.  We agreed that I would send the money by mobile money and Kwei would go the MTN office just across the road with his mother’s phone every week and collect his allowance, which Ashikai would dish out by the day. Read the rest of this entry »

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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 »

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