Ghana’s total public debt as at May this year reached Gh¢137 billion ($31 billion), putting its debt-to-GDP ratio at 67.5%, data from the country’s central bank reveals.
The GH¢137 billion public debt for May ending is more than the GH¢105 billion recorded within the same period last year.
This was made known at the end of Bank of Ghana’s Monetary Policy Committee meeting to review the state of the country’s economy over the past three months.
The data indicate that the debt stock increased by GH¢9.4 billion in three months from Gh¢127.8 billion to GH¢137.2 billion.
It remains unclear for now whether the increase was caused by fresh borrowing by The government, the country’s currency depreciation or other commitments that the government had to deal with.
Notwithstanding, sources say the increase might have been caused by the recent US$2.25 billion bond issued by the government in April.
Out of the total debt, external debt accounted for US$17.1 billion, while domestic debt stood at Gh¢63.9 billion.
At the beginning of the year, the new government led by Nana Akufo-Addo, was planning to raise almost GH¢57 billion through bonds and treasury bills. This is the total amount that the state should realize if the government is able to raise all the amount targeted in its issuance timeline for bonds and treasury bills for the first three-quarters of 2017.
However, in the first quarter of this year, Ghana was able to raise GH¢17.4 billion with GH¢22.2 billion raised in the second quarter. There are also plans to raise GH¢17.4 billion from July to September this year.
Between 40-30 billion cedis of the said amount is for roll over maturities, while the remaining would be used to finance government’s own projects.