Dean of University of Cape Coast Business School, Professor John Gatsi says, the implications of Moody’s downgrade of Ghana from Caa to Ca with a stable outlook will make investors shy away from investing or buying Ghana’s bonds.
“It means that the signal extends to investors to be wary of Ghana and again that the debt restructuring discussion is not favourable to investors,” He said.
He says, investors who have already invested in government bonds must be worried about how their debt will be repaid.
“The implication is that Ghana is now risking investors and nobody is lending from the Eurobond market again. It only re-echoing the fact that the ability of government to pay back is going to be difficult,” He added.
Touching on government’s gold for oil deal , he says multinational companies in the extractive sectors especially gold do not have any obligations to provide about 20 percent of it’s gold to government.
He called on the government to be transparent about the deal.
