{"id":8993,"date":"2024-11-25T12:16:50","date_gmt":"2024-11-25T12:16:50","guid":{"rendered":"https:\/\/www.fishfmonline.com\/?p=8993"},"modified":"2024-11-25T12:16:54","modified_gmt":"2024-11-25T12:16:54","slug":"ghana-to-face-liquidity-pressures-in-2025-2026-despite-restructuring-most-of-its-debt-fitch","status":"publish","type":"post","link":"https:\/\/www.fishfmonline.com\/?p=8993","title":{"rendered":"Ghana to face liquidity pressures in 2025, 2026 despite restructuring most of its debt \u2013 Fitch."},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Despite restructuring most of its debt, Fitch Ratings has hinted that Ghana will face significant liquidity pressures going into next year and 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the UK-based firm, the interest rate revenue ratio would still be among the highest of Fitch\u2019s rated sovereigns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The interest rate revenue ratio is estimated at 29% in 2025 and 30% in 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thomas Garreau, Associate Director of Europe, Middle East, and Africa Sovereign Ratings at Fitch said the situation requires very drastic measures to improve the fiscal economy.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ose-youtube ose-uid-a565e6866d69d99647572664bbbdc6ec ose-embedpress-responsive\" style=\"width:400px; height:400px; max-height:400px; max-width:100%; display:inline-block;\" data-embed-type=\"Youtube\"><iframe loading=\"lazy\" allowFullScreen=\"true\" width=\"400\" height=\"400\" src=\"https:\/\/www.youtube.com\/embed\/7QIGpt4iDEc?feature=oembed&color=red&rel=0&controls=1&start=&end=&fs=0&iv_load_policy=0&autoplay=0&mute=0&modestbranding=0&cc_load_policy=1&playsinline=1\" frameborder=\"0\" allow=\"accelerometer; encrypted-media;accelerometer;autoplay;clipboard-write;gyroscope;picture-in-picture clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen referrerpolicy=\"origin\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe do consider that Ghana will still face significant liquidity pressures. We still have a very elevated interest rate revenue ratio. The interest rate will still be among one of the highest at approximately 30% &#8211; so almost twice the emerging markets rate of 16%\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis represent quite some significant liquid pressures. Ghana has implemented a large fiscal consolidation with a 4.6 percentage points primary fiscal adjustment between 2022 and 2024\u201d, he added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fitch had indicated to move Ghana out of sovereign default from July 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This follows its anticipation of the country completing the external debt restructuring by the end of June 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite restructuring most of its debt, Fitch Ratings has hinted that Ghana will face significant liquidity pressures going into next year and 2026. According to the UK-based firm, the interest rate revenue ratio would still be among the highest of Fitch\u2019s rated sovereigns. The interest rate revenue ratio is estimated at 29% in 2025 and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[41],"tags":[149,2933,2934,2935],"class_list":["post-8993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-news","tag-ghana","tag-interest-rate-revenue-ratio","tag-liquidity-pressure","tag-thomas-garreau"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8993"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8993\/revisions"}],"predecessor-version":[{"id":8995,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/8993\/revisions\/8995"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/8994"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}