Politics
IMF Cash Seen for Ghana as Investors Bid Up Bonds
Getting funds from the IMF may raise concern that Ghana is taking on too much debt, said Chris Becker, Johannesburg-based market strategist at ETM Analytics. Becker stated, “Balance-of-payment support without a road map showing how they will bring down the fiscal deficit over time may well be perceived by the market as over-accumulation of debt.” he said by phone May 23
Ghana is preparing to name advisers for a third Eurobond, Sam Mensah, technical adviser at theFinance Ministry, said April 29. A bailout may help lower the country’s borrowing costs if the government can show it’s making progress with the nation’s finances, Standard Bank’s Gadio said. “Ghana’s Eurobond offers value versus African peers,” he said before concluding, “But without more tangible improvement in the fiscal figures, it will be a hard story to sell.”
Source: Bloomberg News
