Economic Policy Advisor to the Vice President, Sharif Mahmud Khalid, has admitted that the recent credit ratings upgrade by Fitch is not the result of structural reforms or economic transformation.
He said it is largely the product of the controversial Domestic Debt Exchange Programme (DDEP).
Speaking on PM Express on Wednesday, June 17, following Fitch's decision to lift Ghana's rating from 'Restricted Default' to 'B-' with a stable outlook, he stated with candour what is driving the improved external perception. "If you look at these ratings," he said, "when we took office, remember that Prof [Bokpin] mentioned that we started to make some gains thanks to the Domestic Debt Exchange Programme. "Because the DDEP did give some gains, and obviously that would have an impact on any ratings that are to come externally." The admission contrasts sharply with narratives crediting tough fiscal discipline and macroeconomic reform.
Instead, Dr Khalid revealed the upgrade is "artificially" influenced by the effects of debt restructuring, not by deep or permanent economic fixes. "What it means is that artificially, there would be some gains thanks to a Domestic Debt Exchange Programme," he said. "Now, when we came in or took over office, what happened?
