Public debt of GH122 billion for end of 2016 could still increase

The current public debt of GHC122.3 billion for-end-of last year could increase further when the final numbers are released Joy Business checks reveal.

Although figures released by the central bank on Friday in its Summary of Economic and Financial Data are provisional they suggest that the final numbers might be more than the GHC122.3 billion or possibly less.

Judging from previous instances, where the final numbers have always been higher than what has been put out by the Bank of Ghana, it is likely that the final debt numbers might be more than what has been put out. 

If the figures go up it could give credence to earlier reports that the public debt might be higher than what was estimated.

The GHC122.3 billion debt translates into a department to-GDP-Ratio of 72.5 percent meaning it takes about 72.5 percent of the total value of Ghana’s economy.

About GHC68 billion of the public debts were facilities or loans secured from outside the country, while GHC53.2 billion were from domestic borrowings. 

The 72.5 percent still makes Ghana a high-risk debt distress country, a categorization by the International Monetary Funds (IMF), which is more of a warning that the country may have some challenges in payment its debts on time. 

The Nana Akufo-Addo government in the 2017 Budget has promised to reduce the Debt to GDP ratio to about 71 percent.

 

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