The Ranking Member of Parliament’s Finance Committee, Dr Cassiel Ato Forson says the Ghanaian economy would have declared insolvency by now if it happened to be a company.
According to the Ajumako-Enyan-Essiam MP, the two downgrades in just a week proves that the country is insolvent.
On Friday, Standard and Poor’s (S&P Global) downgraded the economy to junk status from B-B’ to CCC+C with a negative economic outlook.
Fitch Ratings also followed suit with its rating which saw the economy being downgraded from B- to CCC.
Speaking to Accra-based Citi News on the back of this, Dr Forson predicted further gloom for the economy.
“The Ghanaian economy is simply insolvent. The truth of the matter is that we are bankrupt. Let no one deceive you with semantics. If the Ghanaian economy happened to be a company, we would have declared insolvency. Things are in bad shape. Some of the rating agencies even delayed their announcements.”
“I can assure you that, by the first quarter of next year, Ghana’s credit rating will be D. It is inevitable, not avoidable. This is simply because we are insolvent. We are not in the position to service the debt because as we speak, we are using a chunk of our resources to pay our debt. It’s a basket case, and it’s about time government opens up about it.”
