Ghana’s debt remains relatively unchanged at ¢393.4bn in June 2022 – BoG

Ghana’s total public debt stock went up marginally by ¢130 million to ¢393.4 billion in June 2022, about 78.3 per cent  of Gross Domestic Product, the Summary of Economic and Financial Data by the Bank of Ghana has revealed.

This is against a revised ¢392.1 billion (78 per cent of GDP) recorded in March 2022. The earlier figure put out by the Central Bank in May 2022 was ¢391.9 billion.

In dollar term, the country’s debt dropped marginally to $54.4 billion in June 2022, from $55.1 billion in March 2022.

A careful look at the data suggests that the country did not borrow fresh funds during the 2rd quarter of 2022.

According to the figures, the total public debt stock of the country dropped to ¢388.1 billion in April 2022, from ¢392.1 billion in March 2022. It later went up marginally to ¢389.2 billion in May 2022 and subsequently to ¢393.4 billion in June 2022.

The domestic debt remained unchanged at ¢190.1 billion in June 2022. In March 2022, the domestic debt stood at ¢190.1 billion.

This is equivalent to 37.8 per cent of GDP.

However, the external component of the total public debt went up marginally to ¢203.4 billion in June 2022, from ¢201.9 million in March 2022. This was as a result of exchange rate fluctuation.

In dollar term, it fell by $300 million in March 2022 to $28.1 billion in June 2022. This was the period the cedi stabilised after assuming a free fall for the first three months of 2022.

The debt-to-GDP ratio of the external debt is however approximately 40.5 per cent of GDP.

On the other hand, the financial sector resolution bond went down to GH¢14.5 billion in June 2022, from ¢14.6 billion recorded in March 2022. This is equivalent to 2.9 per cent of GDP.

The International Monetary Fund (IMF) had in its April 2022 Fiscal Monitor predicted Ghana’s debt to Gross Domestic Product (GDP) ratio of 84.6 per cent in 2022.

According to the Fund, the country’s total debt was estimated at 81.8 per cent of GDP in 2021, higher than the 76.6.1 per cent, approximately ¢351.8 billion quoted by the Bank of Ghana.

The Fund also said the country’s debt-to-GDP ratio will increase from 2022 to 88.4 per cent in 2026, before falling to 87.4 per cent in 2027.

But prior to that it will record relatively same debt-to-GDP ratio of 84 per cent in 2022 and 2023, and later surge to 85 per cent and 86 per cent in 2024 and 2025 respectively.

Other organisations have also projected similar trend for the country’s debt-to-GDP ratio. –

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