In a data released by the Bank of Ghana, Ghana’s total public debt stock has risen by the first quarter of 2021 at GH304.6 to almost GH30 billion in April and May.
This made Ghana’s total public debt as of the May 2021, rose to GH332.4 which brings Ghana debt to Gross Domestic Product (GDP) ratio 76.6% at the end of May.
According to data from the Central Bank, this is the highest recorded in the past year, little higher than the debt to GDP ratio of 76.1% recorded at the end of 2020.
The external debt breakdown shows that the component of debt secured externally after remaining relatively stable in the first quarter risen by GH20 billion from GH141 billion at the end of March 2021, to GH161.5 billion at the end of May, 2021.
The percentage of external debt component at the end of May 2021, rose to 37.2% at the total value of the economy which is estimated to be about GH434 billion for 2021.
On the other hand, the domestic debt increased steadily in the first 5 months of 2021.
At the end of the first quarter, Ghana Domestic Debt rose by GH7 billion, bringing total domestic debt to GH170.8 billion at the end of May, 2021, from GH¢163.6 billion at the end of March, 2021.
The new GDP projected figure for now 2021 is 39.4%.
Meanwhile, the total public debt for financial sector resolution bond was GH15.2 billion at the end of May 2021.
In a statement issued by the Executive Director for Ghana and the International Monetary Fund’s 2021 article IV press released by the IMF’s Debt Sustainability Analysis (DSA) shows that Ghana remains at high risk of external and overall debt distress under the baseline, even though public debt is assessed as sustainable going forward.
The Bretton Woods Institution is projecting Ghana Debt to GDP ratio rise to 83.5% by the end of 2021.
Source: citinewsroom
