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Ghana’s public debt increased by GH¢46.4 billion in the first two months of 2024, to reach GH¢658.6 billion ($53.1 billion), according to figures from the Bank of Ghana.
As a result, the debt to GDP ratio of the nation is 62.7%.
According to the Bank of Ghana’s May 2024 Summary of Economic and Financial Data, at the end of 2023, Ghana owed GH¢611.2 billion in debt.
In January 2024, it reached GH¢626.0 billion, and in February of the same year, it reached GH¢658.6 billion.
The government’s increased domestic borrowing and the cedi’s decline were the main causes of this large increase.
Analyzing the numbers, it was found that the external debt rose by GH¢28.9 billion, primarily as a result of the cedi’s depreciation, while the domestic debt increased by GH¢18.5 billion.
The amount of external debt by February 2024 was $30.6 billion (GH¢350.3 billion), or 36.1% of GDP.
In the meantime, 36.1% of GDP, or GH¢278.7 billion, was owed domestically.
With a deficit-to-GDP ratio of 2.6% in the first quarter of 2024 compared to 1.8% in the same time the previous year, the government’s fiscal operations were on track. But in March 2024, the primary balance showed a 1.4% GDP deficit.
Due to financial difficulties, Ghana stopped making interest payments on its foreign loans in December 2022.
Following an agreement with bilateral creditors in January 2024, the nation just received a Memorandum of Understanding from them for restructuring a portion of its external debt. At this point, it is in the midst of bondholder negotiations.
Source: Ghanatodayonline.com
