Ghana’s debt remains relatively unchanged at GHC 393.4 billion in June 2022 – BoG

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Ghana’s total public debt stock increased slightly by 130 million yen to 393.4 billion yen in June 2022, or about 78.3% of gross domestic product, the economic and financial data summary revealed. of the Bank of Ghana.

This is against a revised figure of ¢392.1 billion (78% of GDP) recorded in March 2022. The previous figure released by the Central Bank in May 2022 was ¢391.9 billion.

In dollar terms, the country’s debt decreased slightly to $54.4 billion in June 2022 from $55.1 billion in March 2022.

A close look at the data suggests that the country did not borrow any new funds during the 2nd quarter of 2022.

According to the figures, the country’s total public debt stock fell to ¢388.1 billion in April 2022 from ¢392.1 billion in March 2022. It then increased slightly to ¢389.2 billion. in May 2022, then to ¢393.4 billion in June. 2022.

Domestic debt remained unchanged at ¢190.1 billion in June 2022. In March 2022, domestic debt stood at ¢190.1 billion.

This is equivalent to 37.8% of GDP.

However, the external component of total government debt increased slightly to 203.4 billion yen in June 2022 from 201.9 billion yen in March 2022. This is explained by exchange rate fluctuations.

In dollar terms, it fell from $300 million in March 2022 to $28.1 billion in June 2022. This is the period in which the cedi stabilized after assuming a free fall for the three first months of 2022.

The debt-to-GDP ratio of external debt, however, is around 40.5% of GDP.

On the other hand, the financial sector resolution obligation fell to GH¢14.5 billion in June 2022 from ¢14.6 billion recorded in March 2022. This is equivalent to 2.9% of GDP.

The International Monetary Fund (IMF) had in its April 2022 Fiscal Monitor predicted that Ghana’s debt-to-gross domestic product (GDP) ratio would be 84.6% in 2022.

According to the Fund, the country’s total debt was estimated at 81.8% of GDP in 2021, higher than the 76.6.1% or around 351.8 billion yen quoted by the Bank of Ghana.

The fund also said the country’s debt-to-GDP ratio would increase from 2022 to 88.4% in 2026, before falling to 87.4% in 2027.

But before that, it will register relatively the same debt-to-GDP ratio of 84% in 2022 and 2023, then rise to 85% and 86% in 2024 and 2025 respectively.

Other organizations have also predicted a similar trend for the country’s debt-to-GDP ratio.

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