[ 2014-10-27 ]

Wage bill, fallen gold price cause of Ghana’s poor ratings - Seth Terkper
Finance Minister, Seth Terkper, has blamed the
latest downgrading of the Ghanaian economy by
rating agency Standard & Poor’s on the "wage
bill", "lack of gas supply" and "fallen gold
prices" on the international market.

Ghana's credit rating has been downgraded deeper
into "junk" territory by Standard & Poor's on
concerns that access to financing will continue to
be a struggle even if it enters an International
Monetary Fund programme.

S&P highlighted that despite a successful
international bond issue earlier this autumn, the
country has gross external financing needs of 137
per cent of current account receipts and reserves
next year, and therefore relegated Ghana one notch
to B-, six levels below investment grade
Thursday.

Commenting on the development via his twitter
account, Terkper wrote: “Recent reverses in
ratings reflect wage & other budget costs; lack of
gas supply; and fall in gold/cocoa prices”.

He said he is confident the Cocoa-producing West
African country will regain its lost glory in the
shortest possible time.

"Ghana keen to regain its S&P & other Sovereign
ratings".

Source - Starrfmonline

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