The running mate of the New Patriotic Party, Dr. Mahamudu Bawumia has called on President John Mahama to stop disgracing himself by making ill-informed comments on the recent rating by International Credit Rating Firm Moody’s.
President Mahama recently said that Moody’s rating from negative to stable is an indication that his government is “doing something right.
Moody’s Investors Service, a UK-based rating agency, recently rated the Ghanaian Economy B3 – signalling stability from negative outlook.
The key drivers of the current rating, the agency said are being driven by “Significant fiscal deficit reduction and institutional reform implementation over the past year under the umbrella of the 3-year IMF programme starting April 2015.
However, addressing NPP supporters at the Trade Fair Centre in Accra on Sunday October 9, during the launch of the NPP manifesto, the former deputy Bank of Ghana governor stated that “Ghana’s sovereign credit rating has been downgraded from B positive. Without oil, Ghana was being rated at B Positive under the NPP. We’ve now come down with oil under the NDC and John Mahama to B – (negative) with a stable outlook in 2016 with oil. In fact, International Credit Ratings Agencies like Moody’s, Fitch, Standard and Poor’s, now have basically the same credit rating for Ghana.”
According to Dr. Bawumia, the comments by the President were ill-informed because the ratings did not constitute an upgrade.
“The recent revision of Ghana’s Outlook from B- to B- Stable, which is the equivalent of the B3, has resulted in a misinterpretation by the NDC government and President Mahama that Ghana’s credit rating has been upgraded. This is in fact not the case. Moody’s did not upgrade Ghana’s rating.
“Ghana’s rating under Moody’s is still B-. It is only the outlook that has been revised, and that is not equivalent to a ratings upgrade. Sometimes one wonders whether they don’t read or they don’t understand. So, let me give Mr. President a free piece of advice, Mr. President, please desist from embarrassing yourself by stating that Moody’s has upgraded Ghana. Your economic management team should explain that difference to you.”
He added: “The Mo Ibrahim 2016 report on governance shows that on virtually all key indicators such as safety and the rule of law, human rights, economic opportunities, infrastructure, human development, business environment, health and public management, all these indicators, Ghana is worse off today than it was 10 years ago. The IMF in its recent review of the Ghanaian economy has warned that Ghana is on the cask of a financial and economic crisis.
“Notwithstanding this abysmal record, President John Mahama is actually asking Ghanaians where the economic crisis is. He is clearly out of touch. Mr. President the economic crisis is out there if you care to look out of the Flagstaff House”.