We need 3 years before returning to international capital markets – Ofori-Atta

Finance Minister, Ken Ofori-Atta, has stated that Ghana’s return to the international capital market may not occur anytime soon due to the negative impact of economic downgrades by international rating agencies.

Ghana has been out of the international market due to various unfavourable economic conditions occasioned by a weak local currency and high debt levels.

Three rating agencies, Fitch, Moody’s and Standard & Poor’s, have downgraded the country’s creditworthiness to junk status.

According to the minister, the government will need to work on its current economic situation and other fiscal measures to have easy market access.

“Returning to the international capital market is going to take a bit of time. It will take about two to three years before we can work on our ratings before that time. The recent downgrade is very unfortunate,” he said.

The international capital market is where residents of different countries trade assets. The market is not really a single market but a group of closely interconnected markets in which asset exchanges with some international dimensions take place.

The market makes available a platform where buyers and sellers engage in the trade of financial securities like bonds, stocks, etc. The buying and selling are undertaken by participants such as individuals and institutions.

Mr. Ofori-Atta maintained that it would be prudent for managers of the economy to critically assess the economic situation before returning to the capital market to avoid high coupon rates.

The minister was, however, hopeful that a deal would be closed to restore investor confidence in the economy.

He wants the deal to be finalized before the next budget (2023) presentation in November 2022.

He made these comments at a press conference on the state of Ghana’s economy on September 28, 2022.