Ghana’s debt hits $30bn

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A financial report from the Bank of Ghana (BOG) has indicated that the President John Mahama government incurred a US$ 5 billion debt for the year 2016. This increased the country’s total public debt stock to US$ 30.1 billion by the end of November, 2016.

According to the Bank of Ghana, “Available data indicates that the total debt stood at US$30.1 billion (70.9 % of GDP) at the end of November, 2016, compared with the US$25.6 billion (69.5 % of GDP) at the end of December, 2015.
The apex bank report said 55 percent of the total debt stock was domestic debt, which increased from 40 percent in 2015 saying, “The rising share of domestic debt in total public debt is a positive development for long term debt sustainability for two reasons.

“First, it would minimize the potential impact of unanticipated redemption and secondly lower sensitivity of the public debt profile to exchange rate volatility. It is however, important to manage this process in a manner that does not crowd out the private sector from the loan fund market,” the BOG report indicated.

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