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Business News of Wednesday, 29 June 2011

Source: CNN

Ghana one of 10 countries least likely to pay debts – Standard & Poors

Ghana has been listed as one of 10 countries least likely to pay their debt owed to multilateral agencies, by credit rating agency, Standard & Poor’s.

Ghana is the only African country on the revised credit rating list, reports CNN.

The country occupies the 10th position, beating little known Belize and Argentina which are 9th and 8th respectively on the unenviable list.

With a credit rating of ‘B,’ Ghana shares 'honours' with Belarus, Argentina, and Belize, even though we appear to have a lower B.

Top of the list is troubled Greece which is rated CCC. That makes Greece the least credit-worthy country rated by the credit agency and signals the belief that Athens will default on its debt payments.

Five other countries, Jamaica, Ecuador, Pakistan, Grenada and Fiji are rated (B-).

The CCC rating for Greece does not bode well for the financial world. The risks are much larger with the Greek situation, because of the pressure it puts on the 17 nations united under the euro currency. A default from Greece is bound to rekindle fears of possible defaults from other euro nations, like Portugal and Ireland, and reignite the debate on whether the eurozone can survive.

Last year, Greece got $145 billion in aid from the EU and IMF to make its debt payments. Greek press is reporting the country now will seek an additional $58 billion.

Ghana’s debt stock, according to government spokesperson stands at over $13 billion, which is just about 37 per cent of GDP.

Government believes the debt is not unmanageable.

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