Ghana’s debt stock hits GH¢332 billion!

0
Ofori-Atta tables $28M loan agreement for MPs to buy cars

The new debt figure of Ghana brings its debt to Gross Domestic Product (GDP) ratio to 76.6% as of the end of May.

Ghana’s total public debt stock has increased according to new data released by the Bank of Ghana.

The debt stock which ended the first quarter of 2021 at GH¢ 304.6 billion, increased by almost GH¢ 30 billion in April and May.

This saw Ghana’s total public debt as of the end of May 2021 rising to GH¢ 332.4.

The new debt figure brings Ghana’s debt to Gross Domestic Product (GDP) ratio to 76.6% as of the end of May.

This is the highest recorded so far in the past year, slightly higher than the debt to GDP ratio of 76.1% recorded at the end of 2020 according to the central bank’s data.

READ ALSO :  Bank of Ghana in talks with Kantanka on production of armoured bullion vans for banks

External Debt

A breakdown of the debt numbers shows the component of the debt secured outside the country after remaining relatively stable in the first quarter rose significantly by about GH¢ 20 billion from GH¢ 141 billion at the end of March 2021 to GH¢ 161.5 billion at the end of May this year.

The external debt component as of the end of May 2021 made up 37.2% of the total value of the economy, which is projected to be about GH¢ 434 billion for 2021.

READ ALSO :  Odd as woman bans family from her funeral and publishes guest list in own obituary

Domestic Debt

On the other hand, the component of the debt secured locally increased steadily in the first 5 months of 2021.

When compared with the figure recorded at the end of the first quarter, Ghana’s domestic debt rose by about GH¢ 7 billion, bringing total domestic debt to GH¢ 170.8 billion at the end of May this year from the GH¢163.6 billion recorded at the end of March 2021.

The new figure represents 39.4% of the projected GDP for 2021.

The domestic component of the total public debt contains the financial sector resolution bond, which was GH¢ 15.2 billion at the end of May 2021.

READ ALSO :  The friend I helped get a job in my company has taken over my position - Man laments

According to the International Monetary Fund’s 2021 article IV consultation press release, which contains their staff report and statement by the Executive Director for Ghana, the IMF’s Debt Sustainability Analysis (DSA) shows Ghana remains at high risk of external and overall debt distress under the baseline, even though public debt is assessed as sustainable going forward.

The Bretton Woods institution is meanwhile projecting Ghana’s Debt-to-GDP ratio to rise to 83.5% by the end of 2021.

Check out more breaking and trending stories on browngh.com, Kindly Subscribe to our Youtube Channel for more trending and interesting videos & don’t forget to join our Telegram group for exclusive updates.

Previous articleMoesha is mad forever, this should serve as warning to slay queens who go to India for charm – Ibrah One warns
Next articleIt’s better to sleep with a prostitute than to sleep with a married woman-Prophet Kumchacha advises young men(Video)

LEAVE A REPLY

Please enter your comment!
Please enter your name here