Ghana’s Debt Rises, Over GH¢4 Billion Added From May 2021

Ghana’s total public debt stock went by ¢3.5 billion in two months to hit ¢335.9 billion ($57.9 billion) at the end of July 2021, the latest Summary of Economic and Financial Data by the Bank of Ghana has revealed.

According to a MyJoyOnline report, this is equivalent to 76.4% of Gross Domestic Product.

However, the rate of increase has slowed down, compared to the ¢27.8 billion fresh funds added in April and May 2021.

The government had indicated in the Issuance Calendar in July 2021 that its borrowing will slow down in the third quarter of this year [July 2021 to September 2021] as it’s expected to borrow less than a billion cedi for the entire three months. Many will thus be waiting whether it will reflect in the August and September 2021 figures when released later on.

In May 2021, the nation’s total public debt stock stood at ¢332.4 billion, equivalent to $57.9 billion, about 75.7% of Gross Domestic Product.

According to the data from the Bank of Ghana, the domestic debt went up to ¢173.9 billion in July 2021, from ¢170.8 billion in May 2021. This is equivalent to 39.5% of GDP.

Importantly, the financial sector resolution bond had reduced to ¢14.9 billion in July 2021, from ¢15.2 billion in May 2021. This is equivalent to 3.4% of GDP.

For the external debt, it rather went by $100 million in May 2021 to $28 billion in July 2021. This is approximately 37.0% of GDP.