The international financial system, according to President Nana Addo Dankwa Akufo-Addo, is biased against emerging and developing nations like Ghana.
He noted at the 77th UN General Assembly meeting that “the routes that are given to big nations to enable them to adopt actions that would reduce strains on their economies are closed to tiny nations.”
Credit rating agencies “have been eager to degrade economies in Africa, making it tougher to service our obligations,” President Akufo-Addo further lamented.
Ghana’s foreign and local credit ratings were recently reduced by Standard and Poor’s (S&P) global ratings from B-B’ to CCC+C with a bleak economic outlook.
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Before this, Fitch had downgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘B’ and the outlook was negative.
Moody’s Investors Service (Moody’s) also downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook to stable from negative.
Ghana’s debt was about to hit GH¢400 million in April 2022.
President Akufo-Addo fears these ratings are prejudiced and pushing developing countries deeper into debt.
He further described inflation as “the number one enemy this year”.
“Several African countries have inflation rates surging three to four times higher than what they were just two years ago. In Ghana, we are experiencing the highest inflation for 21 years. The high costs of food are hurting the poor, especially the urban poor, the most.”
