Government has been told to work at improving its credit ratings before it considers issuing another Eurobond this year.

A former Finance Minister speaking on Ghana Television?s current affairs programme, Talking Point, said if government fails to improve its declining ratings, it will pay higher interest on the planned Eurobond.

Fitch Ratings agency last October cut Ghana?s rating from B+ to B, which is five levels below investment grade — citing slow progress toward trimming the large 2012 budget deficit of 11.8 percent of GDP.

Moody?s rates the country four levels below investment grade at B1, while both the Economist Intelligence Unit and Standard & Poor?s rate the country B.

S&P and Moody?s cut the outlook on Ghana?s rating from stable to negative in November.

Ghana?s 2013 Eurobond sold in July came shortly after the US Federal Reserve had hinted of a possible deceleration in its bond-buying programme, known as quantitative easing, which raised interest rates on emerging market debts.

The coupon rate of 7.875 percent on the bond was well above issues by sub-Saharan African peers Nigeria, Rwanda and Zambia which had sold debts in the 12 months to Ghana?s issue.

The Finance Ministry plans a third appearance on the international debt market this year to raise at least US$1billion to finance capital projects in the 2014 budget.

The debt will be sold when the ministry sees the right window to enter the market, Deputy Minister of Finance Kweku Ricketts-Hagan told the B&FT.

The ministry has been granted leeway by Parliament to sell more debt than offered for sale if excess bids are received.Let’s

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