Govt needs to apply well-rehearsed and strategic methods to mobilize more revenue<\/b><\/p>\n Weak revenue generation constrains Ghana\u2019s budget flexibility, Moodys<\/p>\n Moody\u2019s downgrades Ghana\u2019s economic outlook from B3 to Caa1<\/p>\n Chief Finance Officer of Valley View University, Dr. Williams Peprah, says the ratings by Moody\u2019s puts Ghana in a worse position than the initial rating by Fitch which gave the country a negative outlook.<\/p>\n Moody\u2019s rating to Caa1 from B3 now means that Ghana\u2019s bond is rated as poor quality and has a default risk. <\/p>\n He said this will mean that Ghana\u2019s accessibility to the international market is now heavily constrained.<\/p>\n \u201cThere is a high propensity that Ghana will default. This is even worse when we compare this to the ratings done by Fitch where Fitch put us in the B- category which simply means there\u2019s a high speculative default.\u201d<\/p>\n \u201cSo, if you look at Moody\u2019s, it is putting us in a very tight corner. Ghana\u2019s bond is not lucrative now and it means that we cannot go to the international capital markets until we pay high interest or coupon rate to investors. So, this is why they [ratings agencies] are advising that we should go for revenue generation\u201d.<\/p>\n Moody\u2019s said Ghana\u2019s revenue generation is weak, thus heavily constrains its budget flexibility and tight funding conditions on international markets.<\/p>\n Dr. Peprah responded that the government needs to devise better strategies than borrowing to ensure that commercial banks can freely lend to individuals and companies to grow the economy.<\/p>\n \u201cI\u2019m sure that is why the E-Levy issue is coming up and it\u2019s also a very difficult issue for all of us”.<\/p>\n \u201cSecondly when we look at what is happening now, if the government doesn\u2019t go to the international markets they will borrow from local commercial banks. We\u2019ve seen a trend in which commercial banks are now buying government\u2019s assets. This is going to bring out a \u201ccrowding out effect\u201d so commercial banks will not be freely lending to individuals and companies to grow the economy\u201d, he pointed out.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Chief Finance Officer of Valley View University, Dr. Williams Peprah Govt needs to apply well-rehearsed and strategic methods to mobilize more revenue Weak revenue generation constrains Ghana\u2019s budget flexibility, Moodys Moody\u2019s downgrades Ghana\u2019s economic outlook from B3 to Caa1 Chief Finance Officer of Valley View University, Dr. Williams Peprah, says the ratings by Moody\u2019s puts […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[4496,85,4428,4259,4497,1824,4498],"class_list":["post-980957","post","type-post","status-publish","format-standard","category-business","tag-corner","tag-ghana","tag-moodys","tag-peprah","tag-puts","tag-rating","tag-tight"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/980957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=980957"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/980957\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=980957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=980957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=980957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Chief](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/669\/66950345.295.jpg\" "\\"Chief")
Chief Finance Officer of Valley View University, Dr. Williams Peprah<\/span><\/span><\/p>\n<\/div>\n