19.5% of domestic debt held by non-resident investors – BoG

Non-resident investors are said to hold about 19.5 percent (Ghs 33.8 billion) of the country’s total domestic debt.

The 19.5 percent domestic debt held by non-resident investors is as a result of their investments into government’s short-term-dated debt instruments such as the 91, 182 and 364 days treasury bills.

According to data contained in the Central Bank’s Quarterly Bulletin for the second quarter of 2021, the 19.5 percent hold of domestic debt by non-resident investors marks a decrease of 0.8 percent when compared to the 20.3 percent holdings of domestic debt in Q2 2020.

Meanwhile, the Bank of Ghana’s holdings of domestic debt at the end of Q2 2021 was Ghs 34,671.7 million, representing 20.0 percent of the total domestic debt holdings.

The Deposit Money Banks (DMBs) held Ghs 52,619.1 million (30.3 per cent). SSNIT held Ghs 574.1 million (0.3 per cent), Insurance companies – Ghs 949.1 million (0.5 per cent), whilst

“Other holders” made up of Rural Banks, Firms and Institutions and Individuals held Ghs 51,198.8 million (29.5 per cent).

Comparative holdings at the end of the second quarter of 2020 were Bank of Ghana (18.7 per cent), Deposit Money Banks (31 per cent), SSNIT (0.5 per cent), Insurance Companies (0.6 per cent ), while other holders had 28.9 per cent respectively.

The stock of domestic debt at the end of Q2 2021, the BoG asserts, stood at Ghs 173,835.2 million, compared to Ghs 121,966.8 million recorded in Q2 2020, adding that the growth in the domestic debt stock reflected increases in the short, medium, and long-term bonds and stocks by Ghs 6,426.8 million, Ghs 35,438.0 million and

Ghs 10,003.6 million, respectively.

“The growth in short-term debt, reflected increases of GH¢2,199.17 million, GH¢1,671.1 million, and GH¢2,556.5 million in the 91-day, 182-day, and 364-day Treasury bills, respectively. The increase in medium-term securities at the end of Q2:2021 was on account of increases in 2-year and 3-year fixed treasury notes as well as 5-year, 6-year, 7-year and 10-year GOG bonds, while the 3-year SSNIT stock declined by GH¢48.7 million.

“The increase in long-term debt was due to a significant rise of GH¢7,811.6 million in long-term Government stocks. There were also increases of GH¢921.8 million and GH¢1,384.6 million in the 15 and 20-year GOG bonds respectively,” said the BoG.

On the other hand, the provisional stock of outstanding public and publicly guaranteed external debt at end-June 2021 was $28,072.15 million, up from the stock position of $24,598.81 million at end-March 2021.

The external debt stock was $3,963.08 million (16.4 per cent) above the level of $24,109.07 million recorded at end-June 2020. This rise in the stock was largely due to the $3.00 billion Eurobond floated on the International Capital Market in April 2021.

The external debt stock at the end of the second quarter of 2021 represented 37.3 percent of GDP compared with 35.65 percent recorded for the same period in 2020.


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