One political lesson that can be learned from what is happening to the current administration led by President Nana Addo Dankwa and Dr. Mahamudu Bawumia is that, in a party’s bid to escape from opposition into power, there must be moderation in making ‘reckless” statements just to score what many terms as cheap political points. This is because, although factually, the current economic crisis Ghana is facing is largely due to global factors, the words of some high personalities like Dr. Bawumia in opposition, have begun haunting them.
Recently, Ghana was downgraded to the CCC+/C Junk status by an international rating agency and this was primarily a result of the depreciation of the Ghanaian cedi. This depreciation can be partly attributed to the international and global crisis and pandemics. Ghanaians and some members of the opposition National Democratic Congress would have joined forces with the government assuming that the NPP had done the same during the period when Mahama and Amissah Arthur were at the helm of affairs of the nation.
However, for purposes of electoral expediencies, that cannot be the case. Especially when what Dr. Mahamudu Bawumia said about Ghana’s downgrade into the same category surfaced online today.
“Notwithstanding the bailout agreement with the IMF on March 20 2015 Moody’s downgraded Ghana’s credit rating further into junk territory with a negative outlook. This is six levels below investment grade and signifies high credit risk. This means that investors are not yet convinced about the prospects for the economy even with an IMF Bailout. Ghana would have to do a lot to convince the market that it is committed to the program. It is in this regard that the announcement last week that Ghana was seeking new bridging loans of up to 1.5 billion dollars was quite shocking. It demonstrates a lack of understanding and appreciation of Ghana’s debt Dynamics by the government”
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