Monday, February 26, 2024
Leaderboard Ad Space
HomePoliticsGhana’s debt rises to GH¢344.5 billion, GH¢2.7 billion added in two months...

Ghana’s debt rises to GH¢344.5 billion, GH¢2.7 billion added in two months as it reaches disturbing levels

Ghana’s public debt stock increased by 2.7 billion to 344.5 billion in November 2021, according to the January 2022 Bank of Ghana Summary of Economic and Financial Data.

This increased the debt-to-GDP ratio to 78.4 percent, emphasizing that the country’s debt has reached concerning levels.

In October and November 2021, 2.7 billion in new loans, mostly domestic debt, were added to the total debt.

Despite the government’s claim that it will borrow only about a billion cedis in the fourth quarter of 2021, data from the Central Bank suggest otherwise.

Domestic debt increased to 179.4 billion in November 2021, up from 178.1 billion in September 2021, according to Bank of Ghana data. This equates to 40.8 percent of GDP.

The government’s continuous borrowing on the domestic market is crowding out the private sector’s access to funds and, as a result, keeping lending rates relatively high.

The external debt remained unchanged in November 2021, at $27.9 billion, from September 2021. However, this equates to 37.6 percent of GDP.

This increased the debt-to-GDP ratio to 78.4 percent, emphasizing that the country’s debt has reached concerning levels.

In October and November 2021, 2.7 billion in new loans, mostly domestic debt, were added to the total debt.

Despite the government’s claim that it will borrow only about a billion cedis in the fourth quarter of 2021, data from the Central Bank suggest otherwise.

Domestic debt increased to 179.4 billion in November 2021, up from 178.1 billion in September 2021, according to Bank of Ghana data. This equates to 40.8 percent of GDP.

The government’s continuous borrowing on the domestic market is crowding out the private sector’s access to funds and, as a result, keeping lending rates relatively high.

The external debt remained unchanged in November 2021, at $27.9 billion, from September 2021. However, this equates to 37.6 percent of GDP.

However, the cedi component of external debt increased due to the cedi’s depreciation against the dollar during the period.

The financial sector resolution bond, on the other hand, remained unchanged at 14.9 billion in November 2021, equivalent to 3.4 percent of GDP.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Sidebar Ad Space

Most Popular