According to recent statistics published by the Bank of Ghana, Ghana’s overall public debt stock has risen once again.
The debt stock, which stood at GH 304.6 billion at the end of the first quarter of 2021, rose by almost GH 30 billion in April and May.
As a result, Ghana’s total public debt increased to GH 332.4 at the end of May 2021.
Ghana’s debt-to-GDP ratio now stands at 76.6 percent as of the end of May, according to the revised debt number.
Read Also: Closed season: Forestry Commission declares a prohibition on shooting wild animals
According to statistics from the central bank, this is the highest debt-to-GDP ratio in the last year, slightly higher than the debt-to-GDP ratio of 76.1 percent recorded at the end of 2020.
After staying reasonably steady in the first quarter, the component of debt secured outside the nation increased substantially by approximately 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.
Foreign debt
After staying reasonably steady in the first quarter, the component of debt secured outside the nation increased substantially by approximately 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.
As of the end of May 2021, the foreign debt component accounted for 37.2 percent of the entire value of the economy, which is expected to reach about GH 434 billion in 2021.
Domestic Indebtedness
The component of debt secured domestically, on the other hand, grew significantly in the first five months of 2021.
Ghana’s domestic debt increased by approximately GH 7 billion from the end of the first quarter, bringing total domestic debt to GH 170.8 billion at the end of May from GH 163.6 billion at the end of March.
The revised number equates to 39.4 percent of 2021’s estimated GDP.
The banking sector resolution bond, which was worth GH 15.2 billion at the end of May 2021, is included in the domestic component of the overall state debt.
The IMF’s Debt Sustainability Analysis (DSA) shows that Ghana remains at high risk of external and overall debt distress under the baseline, even though public debt is assessed as sustainable going forward, according to the IMF’s 2021 article IV consultation press release, which includes their staff report and statement by the Executive Director for Ghana.
Ghana’s debt-to-GDP ratio is expected to grow to 83.5 percent by the end of 2021, according to the Bretton Woods organization.
Source: CITIBUSINESSNEWS
