Ghana's public debt hits GH¢304.6billion as it rises by GH¢13billion

Ghana's public debt hits GH¢304.6billion as it rises by GH¢13billion

- Ghana’s public debt stock hit ¢304.6 billion in March 2021 as it rose by ¢13 billion

- This is equivalent to 70.2% of Gross Domestic Product (GDP), lower than the 76.1% registered in December 2020

- The $3 billion Eurobond raised by the country in March 2021 accounted for this jump in Ghana's public debt stock

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Ghana’s public debt stock hit ¢304.6 billion in March 2021 as it rose by ¢13 billion, the latest Bank of Ghana (BoG) Summary of Economic and Financial Data has revealed.

This is equivalent to 70.2% of Gross Domestic Product (GDP), lower than the 76.1% registered in December 2020.

According to a report filed by Joy News, the fall in debt to GDP ratio is probably due to the expansion in the size of the economy, despite the impact of the COVID-19 pandemic on the economy.

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Ghana's public debt hits GH¢304.6billion as it rises by GH¢13billion
Ghana's public debt hits GH¢304.6billion as it rises by GH¢13billion

The $3 billion Eurobond raised by the country in March 2021 accounted for this jump in Ghana's public debt stock.

The country's debt stood at GH¢291.6 billion at the end of last year but between December 2020 and March 2021, GH¢13 billion was reportedly added to the country’s debt

The domestic debt went up to ¢163.6 at the end of the first quarter of 2021, compared with ¢149.8 billion in December 2020. This is equivalent to 37.3% of GDP.

The external debt stood at ¢141 billion ($24.6 billion) in March 2021, as against ¢141.8 ($24.6 billion). This is approximately 37.7% of GDP.

Importantly, the financial sector debt went down by ¢100 million to ¢15.2 billion. It is equivalent to 3.5% of GDP.

The debt could go down if levies collected to settle the financial sector debt is used to settle part of it.

In other news, the Ministry of Finance in partnership with the European Investment Bank have signed an agreement for the provision of a €170 million loan facility for the establishment of a new national bank.

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The new bank, the Development Bank Ghana (DBG), is an integral feature of the GH¢100 billion Ghana Cares ‘Obaatampa’ Project.

The Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, signed on behalf of Ghana, with Dr. Werner Hoyer, President of EIB, signing on behalf of the Bank.

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Source: Yen.com.gh

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