IMF says S&P downgrade of Ghana questionable

The International Monetary Fund (IMF), on Tuesday said the downgrade of Ghana’s credit rating was questionable and based on wrong information.

Standards and Poor’s, last Friday downgraded the rating from B+ to B, citing a large deficit and lack of clarity in the oil sector.

Mr Mohamad Jafar Mujarrad, IMF Executive Director responsible for Ghana, told the media that on the contrary all data showed that Ghana’s economy was stabilising.

“The overall economic climate is satisfactory. Inflation is coming down and the prospects for growth are positive,” Mr Mujarrad said.

He said the positive outlook was further buttressed by the commitment of the authorities to pursue the reform agenda.

“Indeed, the debt level is coming down and the deficit is coming down as well, leaving Ghana in good standing as far as debt sustainability is concerned,” Mr Mujarrad said.

On oil production, Mr Mujarrad said Ghana must be conservative in the assumption of revenue that might accrue from the industry.

He said there must also be plans to save towards the need for future generation and not to spend the entire dividend now.

Source: GNA