$2bn savings made from debt interest payment suspension – Governor Addison
Some $2bn savings have so far been made from the suspension of interest payments on Ghana’s debts since December last year.
This is according to the Governor of the Central Bank, Dr Ernest Addison.
The Bank of Ghana has revealed that Ghana’s public debt witnessed a notable uptick, surging by approximately ¢6.3 billion during the second quarter of 2023. This substantial increase propelled the nation’s total debt to ¢575.5 billion, which translates to some $52.3 billion.
Strikingly, this figure represents a significant 71.9% of Ghana’s Gross Domestic Product (GDP).
Breaking down the components of Ghana’s public debt, data from the Central Bank discloses that the external component reached $29.9 billion (¢328.6 billion) in June 2023, surpassing the figure recorded in April 2023, which stood at $29.3 billion (¢321.3 billion).
In contrast, the domestic debt stood at ¢246.9 billion at the close of June 2023, constituting approximately 30.8% of the nation’s GDP.
“Some $2bn in savings have been made from the suspension of interest payments on debts since last year. And this is a major relief to the country’s balance of payment and the economy as a whole,” he noted.
In terms of Ghana’s balance of payments, challenges persist. As of June 30, the country continued to grapple with a balance-of-payments deficit which amounted to $341.8 million, equivalent to approximately 0.4% of GDP.
The Capital and Financial Account Balance also remained in deficit territory, recording a figure of $907.2 million.
Touching on the IMF programme, the Governor noted that confidence in the Ghanaian economy is at the heart of the IMF programme.
According to him, the IMF programme is achieving the desired results.
“The IMF programme is doing what it is supposed to do, we are seeing growth in GDP, inflation falling and exchange rate stabilising. All these things are ingredients needed to make the economy better, and all these help to build confidence in the economy,” he quipped.
