Ghana’s debt situation continues to deteriorate as shown by new figures released by the Bank of Ghana.
Total public debt stock at the end of 2020 rose to GH¢ 286.9 billion representing a year-on-year increase of 23.95% over the total public debt stock recorded at the end of the year 2019, adding more pressure on the government to slow down the rate of debt accumulation.
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The new debt figure pushes Ghana’s debt to GDP ratio to 74.4 % at the end of 2020 from the 62.4 % recorded at the end of 2019.
A breakdown of the debt numbers shows that the component of the debt secured outside the country remained relatively stable in the last two quarters of 2020, rising marginally (GH¢ 3 billion) to GH¢ 139.6 billion, and this is about 36.2 % of the total value of the economy which is projected to be about GH¢ 385 billion.
On the other hand, the component of the debt secured locally has risen significantly in the last 2 quarters of 2020 (GH¢ 25 billion) to GH¢147.3 billion, representing 38.2 percent of GDP.
Source: CitiBusinessnews.com