Finance Minister Ken Ofori Atta is attributing the change in Ghana’s credit outlook by Fitch as a demonstration of confidence in the current team managing the economy.
Ratings Agency Fitch last Friday, reviewed Ghana’s credit rating outlook from negative to stable explaining that the review was influenced by government’s resolve to stabilise the economy.
The agency was, however, of the view that, government may spend slightly more than what it has projected in the budget, resulting in a deficit of 7.5 percent.
On revenue, Fitch also fears the government may not meet its revenue target of almost 45 billion due to the recent tax cuts.
The Finance Minister said the rating agency would not have done the review if was not convinced that the measures being implemented to reduce the country’s rising debts are sustainable.
Mr. Ofori-Atta was also of the view that, its recent engagements with the rating agencies in the US also contributed to the decision to review the outlook on Ghana’s creditworthiness.
The minister added that government is committed to sticking to the macroeconomic targets set in the budget and implementing policies that would improve the business environment.
The review, in outlook, is more of an indication that Ghana’s B credit ratings, could be moved to an improved position in the next review if government quickly takes steps to reduce its debt and check its expenditure.
Fitch kept Ghana’s rating at B, which is still a warning to investors that lend money to Ghana that the country is in a position where it may struggle to pay its debts on time.