Ghana’s public debt stock hit ¢273.8 billion, about 71% of Gross Domestic Product in September 2020, according to the November 2020 Summary of Financial and Economic Data by the Bank of Ghana.
This is equivalent to $48 billion.
Between July and September 2020, the nation added ¢10.7 billion to its public debt stock.
The rising debt though a worry has been precipitated by the impact of covid-19 whereby the nation had to borrow extra to finance the budget and also support Micro, Small and Medium Scale Enterprises who were heavily impacted by covid-19.
But for covid-19, the nation’s debt wouldn’t have reached the present levels.
Many countries including some advanced economies had no option but to borrow from the International Monetary Fund and World Baank to stabliise their economies.
According to the data, the external component of the debt stood at ¢138.5 billion ($24.3 billion), about 35.9% of GDP.
The domestic component was however estimated at ¢135.3 billion, about 35.1% of GDP.
On the other hand, the financial sector resolution bond stood at ¢15.4 billion, about 4.0% of GDP.
IMF projects 76.7% debt-to-GDP ratio
The International Monetary Fund earlier forecast a 76.7% of debt-to-GDP ratio for the country this year.
It however said in its Sub Saharan Africa Regional Economic Outlook report that the debt-to-GDP ratio will however drop slightly to 74.7 percent of GDP in 2021.
The Bretton Wood institution said the rising debt however possess a threat to both the fiscal and monetary economy, particularly revenue mobilization, exchange rate and inflation.
However, it was confident the authorities will do better in 2021 to bring the situation under control.
World Bank says Ghana isn’t borrowing too much
The World Bank Country Director for Ghana, Pierre Frank Laporte says the nation isn’t borrowing too much to be criticized that it is moving into a debt distress country category
Mr. Laporte however advised the government to pay critical attention to the macroeconomic stability by being prudent in spending to avert over-borrowing.
Finance Minister calls for debt forgiveness
Finance Minister, Ken Ofori-Atta at the recent IMF/ World Bank meeting called for debt forgiveness and cancellation for vulnerable and debt distressed countries in the world.
Mr Ofori-Atta said the countries needed the gesture to help empower them financially to be able to protect lives and rescue their economies from the impact of the ravaging coronavirus (COVID-19) pandemic.
If the Bretton Wood institutions in particular heed to call, the nation’s debt will go down appreciably.
- Kasoa murder: Spiritualist is a nursing mother of a 2-week-old baby – Police
- Prince Philip has died aged 99, Buckingham Palace announces
- Rapper DMX has died at age 50
- There’s no such thing as ‘spiritual money-doubling’ – Kwaku Bonsam warns
- Over 300 workers of Aviation Handling Services sent home
- Father allegedly burns his 3-year-old baby for disrespecting him
- Streetism in Ghana is a lucrative business where beggars are trained – PhD student at UG
- Men passing romantic comments about women at work is sexual violence – Lawyer
- JoyFM’s Doreen Andoh shares how series of unfortunate events led her into broadcasting
- I only request animal sacrifices to solve problems, not human parts – Kwaku Bonsam
Passengers burnt alive in DR Congo bus crash
Managing Director of Tesah Capital urges Ghanaians to cultivate habit of investment
Mitigate investments risks, ask questions of fund managers – Dr Elikplimi Agbloyor advises investors
BBC flooded with complaints over Prince Philip coverage
Kwame Pianim urges young people to invest in financial markets
Livestream: Newsfile focuses on new Land Act
Guinness Ghana champions ‘Progressive Portrayal’ of women in media, advertising and entertainment industry
Philip was a natural leader but always fulfilled his sense of duty, friend says
Prince Philip: Gun salutes planned across UK after Duke of Edinburgh dies aged 99
Take Covid-19 seriously – WHO warns Ghanaians again
We don’t need new laws, we need enforcement – Adjei Dwomoh on ‘get rich’ schemes
Pragmatic steps needed to advance professional development of female teachers
‘If God gives you a chance to do something, you must do it well’ – Amakye Dede
Kyei-Mensah-Bonsu’s tribal comment distasteful – F.F Anto
JoyFM’s Doreen Andoh shares how series of unfortunate events led her into broadcasting