What have the rating agencies said that is untrue? – Adongo criticises Akufo-Addo’s “dishonesty”

Mr. Isaac Adongo, the Deputy Ranking Member of the Finance Committee of Parliament, has accused President Nana Akufo-Addo of exhibiting “dishonesty” in his criticism of international rating agencies.

The president recently blamed the “reckless behavior” of the international rating agencies for exacerbating Ghana’s economic difficulties.

Speaking at the 30th Annual Meeting of the Afreximbank in Accra on Monday, 19 June 2023, President Akufo-Addo stated: “I can confidently say, as the AU champion for financial institutions and a leader of a country which recently had to deal with one of the most difficult periods in its post-independent history — difficulties which were exacerbated by the reckless behavior of rating agencies that engaged in procyclical downgrades, shutting Ghana out of the capital market and turning a liquidity crisis into a solvency crisis.”

He also acknowledged Afreximbank’s support during those challenging times.

During a streak of downgrades from Fitch, Moody’s, and Standards & Poor’s last year, Ghana faced difficulties accessing the international capital market for borrowing. The country had to seek support from the International Monetary Fund (IMF) as a result.

Currently, Ghana is on a three-year $3-billion programme with the IMF, with the first tranche of $600 million released in May after the deal was approved by the executive board.

Mr. Adongo criticized the president’s remarks at a press conference on Wednesday, 21 June 2023, stating: “You see the dishonesty; when the rating agencies were giving us high ratings, and we were going to the capital markets and presenting Ghana’s rating to them to secure the $3 billion, were we in cahoots with them to deceive investors? What have the rating agencies said that is not true?”

“They should inform that man [Akufo-Addo] that ratings are not diplomatic maneuvers; he should stop going around his peers and spinning tales. The rating agencies and the capital market existed before his own life, and they are part of the globally accepted financial system. He himself has benefited from it.”