Ben
Mr. Richard Acheampong, Member of Parliament for Bia East in the Western North Region, expressed that Vice President Dr. Mahamudu Bawumia has halted economic discussions following Ghana’s economic hardship. Acheampong claimed that since there are no positive aspects to highlight about Ghana’s economy, the Vice President opted to focus on digitalization instead of his expertise in economics. For the first time in history, Ghana has been banned from the international bond market due to its excessively high debt levels.
Acheampong stated in an interview with Martin Ahwireng on Accra-based Original FM 91.9 that Ghana lacks access to the global bond market. He explained that investors are hesitant to engage with Ghana’s bonds, resulting in the government’s unsuccessful attempts to raise “sovereign and agreeing bonds” internationally in October. The investors’ quotas had significantly high coupon rates, making Ghana unable to settle the bonds. Acheampong attributed this lack of foreign investor trust to the country’s financial condition, as investors perceive a risk of default.
Acheampong further mentioned that this situation is expected to persist until June 2022. If Ghana’s economy fails to improve, investors may sell their bonds, leading to a devaluation of the cedi.
_
Source: Omanghana.com
