Following the seeming credit crunch on the world market which is threatening to hit the European market due to losses in the US mortgage market, some concerns are being raised in the country as to whether the situation could have adverse effects on Ghana’s market and whether the country’s quest to assess sovereign bonds could be affected.

The European Central Bank, the U.S. Federal Reserve and other central banks injected $154 billion into money markets on Aug. 9 and $135.7 billion on Aug. 10 amid concern that U.S. sub prime mortgage losses will curtail lending. Central banks in Japan and Australia also joined the ECB and the Fed in pumping cash into their markets last week.

The situation, which became prominent early last week, has prompted some analysts to predict that it could make it harder for banks, firms and consumers to get access to loans and cash. Some also say a global recession could be in the offing if the situation persists.

However speaking to Citi FM, Country Director of Ecobank Development Corporation (EDC), Mike Cobblah says the nation’s quest to assess sovereign bonds will not be affected as the situation could rather move investors to find faith in investing in sovereign instruments, insisting that riskier assets to invest in currently are securitized mortgage loans.

In addition, the Chief Executive of IFS Finance and Leasing Company, Kojo Ohene Kyei says the country should be able to raise the amount it has set itself to raise on the world market, adding that government should however be aware that some investors will generally show extreme caution.