The recent downgrades of Ghana's creditworthiness are a significant blow to the country's economic prospects, but Professor Williams Peprah, a financial analyst and associate professor of finance at Andrews University, has said that not all hope is gone just yet.

He claims that the country can take advantage of the turn of circumstances in order to prevent more losses.

He urged the financial managers of the economy to keep an eye out for vulture investors, or those who are drawn to high-risk bonds.

“Let me give you some positive signals of the ratings. We have been talking that it’s going to affect Ghana but there are some positive signals. There are some investors we call; vulture investors, who are interested in distressed bonds.

“So, if I were the finance minister by now, I will be coming to the US to look out for Vulture investors. They will be prepared to give money to the Ghana government and wait for a long period. When they do that, the returns are abnormal. They are not afraid of risk,” Prof. Peprah was quoted by myjoyonline.com.

He also urged the finance minister [Ken Ofori-Atta] to actively search for these types of investors as the country awaits support from the International Monetary Fund.

“That is probably what I was expecting the finance minister to be traveling around and talking to people. He did that in the first year when he came into government. The Templeton fund that came in, Templeton is a vulture investor.

“The first 3 billion he gave, he profited 20% and we have paid for three years. So, he may have to go and look for vultures who can give us money for a longer period alongside what IMF is giving to us.”

Rating agency Moody’s downgraded Ghana’s long-term issuer ratings to Ca from Caa2 or further junk status. Moody's said this was due to Ghana’s high debt unsustainability and the proposed debt restructuring programme announced by the finance minister in the 2023 budget.

“The Ca rating reflects Moody’s expectation that private creditors will likely incur substantial losses in the restructuring of both local and foreign currencies debts planned by the government as part of its 2023 budget proposed to Parliament on 24 November 2022.

“Given Ghana’s high government debt burden and the debt structure, it is likely there will be substantial losses on both categories of debt in order for the government to meaningfully improve debt sustainability,” a statement on its website said.