UK-based frim, Fitch Solutions, is anticipating that Ghana will reach an agreement with its bilateral creditors in early 2024.
At the same time, it expects a deal with its commercial creditors by mid-2024.
This it believes will improve investor sentiment towards Ghanaian assets, improve capital inflows and provide support to the cedi.
In its December 2023 Country Risk Report on Ghana, it said the government will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework in the coming quarters.
“Indeed, we expect that the authorities [government] will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework in the coming quarters. We anticipate that an agreement with bilateral creditors will be reached in early 2024 and a deal with commercial creditors by mid-2024″.
“Our current projections are predicated on the assumption that the Ghanaian authorities and external creditors will be able to finalise debt restructuring negotiations by mid-2024”, it added.
Should this process take longer than currently anticipated, Fitch Solutions, said investor confidence towards Ghanaian assets would weaken.
This, it stressed, would result in a renewed sell-off of the Ghanaian cedi, which would lead to stronger imported price pressures.
“In this scenario, domestic demand would remain weaker than our baseline forecast assumes”, it concluded.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
