The International Monetary Fund (IMF) says Ghana’s debt to GDP ratio will reduce to about 66 percent by December. 

The country’s debt to GDP ratio has reached 66 percent as at June, with the actual debt stock hitting $110 billion in nominal terms.

There have projections that the ratio will cross the dreaded 70 mark by end of year, which some economist say could mean that Ghana debts stock have reached levels that can be described as unsustainable.

Finance Minister Seth Terkper had earlier told JOY BUSINESS that  the public debt will rise as a  result of some payments they will be making , but will reduce significantly before the end of this year.

Speaking JOYBUSINESS Editor, George Wiafe on the sidelines of the Annual IMF/World Bank meetings, IMF’s mission Chief for Ghana, Joel Tujas Benert the debt to GDP ratio is to improve because of the country’s program with the IMF. 

He, however warns that the situation does not give government the license to go ahead with any aggressive borrowings.

"It is a very good development to see the trend of debts accumulation being reversed, but efforts need to be sustained over time. Even if we project the debt to GDP to decline in 2016 to below 68 of GDP," he said. 

Mr Tujas Benert said it is too high and there is still some way to go before Ghana can have a debt burden which is more reasonable. 

He said there is a possible risk if spending by government getting to the December polls adding there would be shocks on the commodity market but he is optimistic when the after the election, Ghana would see a brighter future. 

For some economist engaged by JOY BUSINESS, the forecast by the Fund could mean two things; first, the economy is going to expand, which is a development that could impact positively on debt-to-GDP.  

It could also mean Government’s debt management strategies are indeed working, that is trying to take cheap funds to clear some expensive debts on its books.