Moody’s evaluation of the Ghanaian Economy was “paid for” by Government to sway Investors – Adongo

Honourable Member of Parliament (MP) for the Bolgatanga Central Constituency, Isaac Adongo, has accused the Akufo-Addo led government of collaborating with a “discredited” Credit Ratings Agency, Moody’s, to sway investors from the real economic issues.

According to the MP, “the government of Ghana having started the process to issue $3 billion of Eurobonds, and having challenges with due diligence questions from investors, fails to answer the question. But goes to procure the services of Moodys, to provide answers that will sway investors”

Speaking on Metro TV’s Good Evening Ghana (GEG) program yesternight, Hon Adongo asserted that Moody’s evaluation of the Ghanaian economy was “paid for” and “published to sway investors to be interested in Ghanaian bonds”

The MP was hinting at the possibility that Moody’s positive evaluation of Ghana’s economy is not reflective of the “real” economic status quo since it purposefully paid for.

He also questioned the credibility of Moody’s, labelling it as a “discredited” agency for its role in “inflating ratings of mortgage companies in America that led to the 2008 financial crisis involving subprime mortgages in America”

Moody’s reportedly agreed to a penalty of $864 million over its ratings of risky mortgage securities in the run-up to 2008 financial crisis in US.

Hon. Adongo bemoaned that “This (Moody’s) is the kind of discredited institution that the government of Ghana is now relying on for credibility to sell its bonds”.

Source: Jonas Danquah || ghananewsonline.com.gh