Ghana’s debt crisis deepens as public debt hits GHS 575bn
Ghana’s public debt has risen to 93.5% [GHS 575.7bn] of Gross Domestic Product (GDP), according to the Bank of Ghana’s January 2023 Summary of Economic and Financial Data.
The data reveals that the country’s debt stock increased by ¢108.3 billion between September and November 2021, indicating that the country’s debt is unsustainable. As a result, a debt restructuring programme is underway, with the Domestic Debt Exchange expected to end on January 31, 2023.
The external component of Ghana’s total public debt reached $29.2 billion (¢382.7 billion) in November 2022, equivalent to 62.1% of GDP. This is an increase from $28.4 billion (¢271.7 billion) in September 2022, and $28.3 billion in December 2021. The significant increase in the cedi component of the external debt is attributed to a 37% depreciation of the cedi to the dollar in 2022.
In terms of domestic debt, it stood at ¢194.7 billion at the end of December 2022, which represents 31.6% of GDP. This is compared to ¢195.7 billion recorded in September 2022, and ¢193.1 billion in November 2022. The government plans to restructure around ¢170 billion of the domestic debt for a period of 12 years.
The report does not include data for the financial sector resolution debt or other liabilities such as energy sector debt. The government’s fiscal deficit to GDP stood at 9.8% in November 2022, up from 7.4% recorded in September 2022.
The World Bank has projected a debt-to-GDP ratio of 99.7% for Ghana in 2023 and 101.8% in 2024. The bank has also classified Ghana as a high debt distress country, estimating the nation’s debt to GDP to reach 104.6% by the end of 2022.
I sometimes blame those who give us loan facilities,they help us destroy the economy and later come and say this. Allowing leaders like our current president to take us into a ditch is so disgusting and looks like we always plan to fail. Don’t know what else we can do to stop this from recurring.