Ghana’s debt hits GHS200bn

Ghana’s debt stock has reached GHS200 billion, the Bank of Ghana has said. Announcing the new policy rate to journalists on Friday, 19 July 2019, Dr Ernest Addison said: “Provisional data for the first five months of 2019 showed an overall budget deficit (on cash basis) of 3.0 per cent of GDP against the target of 2.4 per cent of GDP”.

“This excludes some legacy energy-related payments of about 0.7 per cent of GDP. The higher-than-projected fiscal deficit outturn was primarily driven by lower-than-expected revenues outturn against increased pace of spending.

“The revenue shortfalls were mainly from international trade taxes. Over the review period, total revenue and grants amounted to GHS18.5 billion compared to a programmed target of GHS21.5 billion, indicating an annual growth of 7.6 per cent. Total expenditures however reached GHS28.6 billion, marginally below the target of GHS29.7 billion, and representing 25.2 per cent annual growth.

“In line with the above developments, the stock of public debt rose to 58.1 per cent of GDP (GHS200.0 billion) at the end of May 2019 compared with 51.0 per cent of GDP (GHS153.4 billion) at the end of May 2018.

“Of the total debt stock, domestic debt was GHS94.6 billion (27.5% of GDP), of which GHS11.0 billion (or 3.2% of GDP) represented bonds issued to support the financial sector clean-up while external debt was GHS105.4 billion (30.6% of GDP)”, Dr Addison said.

Meanwhile, the policy rate has been maintained at 16 per cent.

Source: Ghana/ClassFMonline.com/91.3FM