Ghana’s recent credit rating upgrade to ‘B-‘ by Fitch Ratings has drawn mixed reactions from economic experts, with University of Ghana Business School economist Professor Patrick Asuming warning against any premature return to Eurobond markets.
While government officials hailed the improved rating as evidence of economic recovery, Asuming emphasized that Ghana’s ongoing IMF program and incomplete fiscal reforms make external borrowing inadvisable.
“The Eurobonds and extensive external borrowing have been extremely problematic for Ghana’s economy,” Asuming stated, noting that IMF program rules prohibit such borrowing regardless of rating improvements. His caution contrasts with Finance Minister Dr. Cassiel Ato Forson’s characterization of the upgrade as a “significant milestone” and Bank of Ghana Governor Dr. Johnson Asiama’s praise of Ghana’s strengthened macroeconomic fundamentals.
Market analysts observe that while the rating improvement has boosted investor confidence, evidenced by rising prices of Ghana’s existing Eurobonds on secondary markets, the country should prioritize completing its debt restructuring under the G20 Common Framework. Asuming stressed that sustainable fiscal reforms, particularly in revenue generation, must precede any consideration of new external borrowing.
The debate highlights Ghana’s delicate balancing act as it navigates post-crisis recovery. With the IMF program’s structural benchmarks still being implemented and debt sustainability not yet fully assured, most experts agree that patience and fiscal discipline should outweigh any temptation to resume pre-crisis borrowing patterns.
