Ghana’s public debt stock jumps to GHS 569.3bn; represents 71.1% of GDP
Ghana’s public debt has risen to GHS 569.3 billion as of April 2023.
Per the Bank of Ghana’s figures, this represents a GHS 134.7 billion increase since January 2023.
In dollar terms, the total debt stock stood at US$ 52 billion. The increase amounts to 71.1 percent of Gross Domestic Product (GDP).
External debt for the same period was GHS 321.4 billon with a US$ equivalent of 29.3 billion. Domestic debt contributed to GHS 247.9 billion for the same period.
Ghana’s debt climbed to GHS 547.8 billion ($50.7 billion) at the end of January 2023, according to the Central Bank’s July 2023 Summary of Economic and Financial Data.
The debt then jumped to GHS 564.1 billion ($51.2 billion) and GHS 569.5 billion ($51.7 billion) in February and March 2023, respectively.
Nominal GDP on the other hand increased by GHS 190.7 billion to GHS 800.9 billion in April 2023 compared to the GHS 610.2 billion recorded in December 2022.
Debt exchange
Government’s initial Domestic Debt Exchange Programme (DDEP) has fallen short of expectations, prompting it to revisit the restructuring of various components of the domestic debt.
As part of the second round of the DDEP, the Ghana Cocoa Board (COCOBOD) is extending an invitation to investors who hold cocoa bills, the short-term debt securities, to exchange them for longer-term debt securities.
Additionally, the government has announced a new phase of the DDEP that specifically targets US dollar denominated bonds.
This program is intended to facilitate the restructuring of approximately $800 million worth of these bonds, with the aim of better managing Ghana’s debt obligations.
Source: Ghana Business
