Ghana’s public debt stock shoots up to GH¢391.9 billion ending March 2022 – BoG

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Sat, 21 May 2022 Source: www.ghanaweb.com

Ghana’s debt-to-GDP ratio estimated at 78%

Public debt stock shoots up by GH¢40.1 billion by end of March 2022

Bank of Ghana to announce third policy rate decision on May 23

Ghana’s public debt stock at the end of March 2022 rose by some GH¢40.1 billion to GH¢391.9 billion, data from the Bank of Ghana’s May 2022 Summary of Economic and Financial Data has shown.

This, in terms of the country’s Gross Domestic Product (GDP), is estimated at 78 percent, which is slightly lower than the 80.1 percent earlier recorded in December 2021.

According to the figures, the increase in the debt stock was largely attributed to the exchange rate instability and some borrowings from the domestic market.

On the monthly basis, Ghana’s public debt in the first quarter of this year rose by GH¢20.5 billion in January 2022 and subsequently GH¢19.7 billion in February 2022.

In terms of domestic debt, the BoG’s figures showed an increase of GH¢8 billion in the first quarter of 2022 to make GH¢189.9 billion in March 2021. This is equivalent to 37.8 percent of GDP.

On the external component of the overall public debt stock, the figure rose to US$28.4 billion (GH¢201.9 billion) in March 2022, from an earlier US$28.1 billion in December 2021.

This, however, indicated there were no borrowings on the external component in the first quarter of 2022 but a debt-to-GDP ratio of 40.2 percent was recorded as external debt.

In terms of the cedi component of the total debt stock for the period, the BoG data showed an increase of GH¢31.9 billion in the first three months of 2022.

This was largely attributed the depreciation in the value to of the Ghana cedi to US dollar.

Meanwhile, the latest figures for the country's public debt stock could force government to stick to more homegrown solutions to sustain the Ghanaian economy.

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Source: www.ghanaweb.com
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