Public debt stock reaches ¢159bn billion in August

Public debt stock reaches ¢159bn billion in August

- Ghana’s debt stock has reached GH₵159 billion in August, according to reports

- This amount shows an increase of GH₵5.1 billion from May 2018

- The country’s domestic debt accounts for GH¢73.8 billion cedis, while outside debt is GH¢18.2 billion

The country's public debt stock has reportedly reached ¢159.4 billion as at August 30, 2018, according to the Central Bank's September summary of Economic and Financial data.

The data also shows that the stock of debts have shot up by ¢5.1 billion from May this year to August.

From the data, the domestic debt accounted for ¢73.8 billion cedis representing 30.6 percent of the total value of the economy. Also, $18.2 billion of the total debt were loans taken from outside the country.

Ken Ofori Atta, Minister of Finance

Ken Ofori Atta, Minister of Finance
Source: Depositphotos

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This translates into ¢85.5 billion, when denominated it in cedis and represents 35.4 percent of Gross Domestic Product (GDP). The ¢159.4 billion debts translate into 65 percent of Ghana’s GDP.

This was gathered in a Joy Business report sighted by YEN.com.gh.

Some economists have argued that this may not be that bad because the country may not have crossed the dreaded 70 percent mark which could result in Ghana being classified as a debt distress country.

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The large debt stocks could increase the cost of the country's loans that are being serviced and the ones that government intends to take.

Some have also argued that because the economy has expanded over the last months, it means that the country has gotten a lot of assets to payoff these debts on time.

According to data put out by the Ghana Statistical Service in April, the value of the country's economy at about ¢215 billion.

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Meanwhile, the government’s issuance calendar for the first half of this year, has indicated that the government borrowed about ¢22.4 billion through bonds and Treasury bills.

However, only ¢4.6 billion can be classified as fresh borrowings which were used to meet the government’s financing needs.

The remaining ¢17.8 billion was used to finance debts that were maturing, according to the calender

It further showed that it took ¢11.3 billion in the second half of this year and ¢11.1 billion in the second quarter of this year.

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Source: Yen.com.gh

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