Public debt now Ghc53.6b

Ghana’s total public debt stood at Ghc53.6b as at the end of June 2014, representing 55.4 percent of Gross Domestic Product (GDP).

Of the total stock debt, domestic debt constituted 43.9 percent, and external debt was 56.1 percent.

Dr. Kofi Wampah, Governor of Bank of Ghana (BoG), who made this known at the close of a Monetary Policy Committee (MPC) meeting in Accra, said gross international reserves as at the end of August, 2014 was estimated at US$4.2 billion equivalent to 2.4 months of import cover as against US$5.6 billion or 3.1 months of import cover at the end of 2013.

He said government’s total expenditure, including payments for the clearance of arrears and outstanding commitments, amounted to Ghc19.3 billion compared to a target of Ghc6.3 billion, adding that interest payments totaled Ghc3.7 billion as against a target of Ghc4 billion.

Dr. Wampah said the deficit of Ghc6.1 billion was financed mainly from domestic sources, resulting in a Net Domestic Financing (NDF) of Ghc4.8 billion compared to the budget target of Ghc4.2 billion.

He said foreign financing of the budget amounted to Ghc1.3 billion as against the target of Ghc1.2 billion.

“For the first half of the year, the overall balance of payments recorded a deficit of US$1.5 billion compared to a deficit of US$677 million in the same period last year,” Dr. Wampah said.

He said the current account deficit narrowed to US$2 billion from US$2.3 billion in the same period of 2013.

This, the governor said, was as a result of an improvement in the trade deficit and net private transfers.

He said the capital and financial accounts registered lower net inflows of US$479 million compared to US$1.5 billion recorded same period last year.