Ghana’s public debt now GH¢658.6bn
Economic and financial data from the Bank of Ghana (BoG) has put Ghana’s public debt (as at February 2024) at GH¢658.6 billion.
Ghana’s public debt at the end of 2023, stood at GH¢611.2 billion, rose to GH¢626 billion in January 2024 and further increased to GH¢658.6 billion in February 2024.
The increase elevates the nation’s debt-to-Gross Domestic Product (GDP) ratio to 62.7%, up from GH¢611.2 billion at the close of 2023.
The rise in the public debt stock was driven primarily by the depreciation of the cedi and a significant rise in government borrowing on the domestic market.
The report details that the domestic debt increased by GH¢18.5 billion, while external debt surged by GH¢28.9 billion, largely attributable to the weakening cedi.
As of February 2024, the external component of the total public debt stood at $30.6 billion (GH¢350.3 billion), which represents 36.1% of GDP.
The domestic debt, on the other hand, was recorded at GH¢278.7 billion, accounting for another 36.1% of GDP.
Ghana requested assistance from the International Monetary Fund (IMF), to get its macroeconomic situation back on track, keep its finances stable, and shield the most vulnerable members of its society.
The bailout programme has necessitated a debt restructuring exercise both domestically and externally .
The country has temporarily halted debt service payments on some of its foreign debt, including Eurobonds, commercial term loans, and most bilateral debts.
The Executive Board of the IMF is set to sit on Ghana’s second review for consideration and approval in June to unlock the third tranche of US$360 million, bringing the total disbursements under the programme to US$1.56 billion.
