Financial data from the Bank of Ghana (BoG) shows that- the current government in just one year added GHc16.8 billion to the country’s debt stock.This is about GHc5 billion higher than what former President, John Mahama added in his first year of office According to the data, Ghana’s total debt stock is GHc138.8 billion,
making (68.7%) of gross domestic product (GDP)
making (68.7%) of gross domestic product (GDP)
Of the total debt stock, domestic debt went up by 20.1% to GHc64.2 billion, while external debt rose by 7.9% to hit GHc74.7 billion. This
included the US$2.5 billion energy
domestic bond.
However, in 2013,under President Mahama’s first year administration,the total public sector debt stock as at the end of September 2013 was GHc46.1 billion (53.5%) of GDP up from GHc35.1 billion at the end of December 2012,Between December, 2012 and September, 2013, former President Mahama’s administration added about GHc11 billion to the total debt stock, as against the GHcl6.8 billion the Nana Akufo. Addo’s administration added to the country’s debt stock.
Prof John Gatsi, Head,Department of Finance- School of Business at the University of Cape
Coast, describes the current debt stock as high. “As far back as 2016, the debt stock was GHc122 billion, We
cried that it was too high and indeed it was too high. We expected that debt accumulation
will be moderated. In terms of trajectory, may say that the accumulation is on downward trend, but the debt stock is not on downward trend”
Coast, describes the current debt stock as high. “As far back as 2016, the debt stock was GHc122 billion, We
cried that it was too high and indeed it was too high. We expected that debt accumulation
will be moderated. In terms of trajectory, may say that the accumulation is on downward trend, but the debt stock is not on downward trend”
According to Ghana’s total is GHc138.8 making (68.7 gross domes (GDP). Of the stock, downward up by 2
He further stated that looking at the increase of about GHc16.8 billion to the debt stock in one year, it GHc64.2 bill means that external deb 7.9% to hit GH billion. This we are not able US$2.5 billion domestic bond the velocity of our debt is very fast and to march the accumulation of that debt to strategic infrastructure in the country, and
that is a key concern.
He further stated that looking at the increase of about GHc16.8 billion to the debt stock in one year, it GHc64.2 bill means that external deb 7.9% to hit GH billion. This we are not able US$2.5 billion domestic bond the velocity of our debt is very fast and to march the accumulation of that debt to strategic infrastructure in the country, and
that is a key concern.
“Prof. Gatsi believes that the buntry’s inability to manage the exchange rate is also having an
effect on the debt stock “This IS because some of the debts are in foreign currencies. If the exchange rates are not good, it will automatically increase the size of the debt stock in Ghana cedi terms,” he mentioned, adding that in order to engage in proper debt management, the government must consider all those things.
effect on the debt stock “This IS because some of the debts are in foreign currencies. If the exchange rates are not good, it will automatically increase the size of the debt stock in Ghana cedi terms,” he mentioned, adding that in order to engage in proper debt management, the government must consider all those things.
The economist said “the GDP is growing and what it means is that all things being equal there may be a downward trend in the debt to GDP ratio”
“But the point is that you don’t go to the creditors and pay debt to GDP ratio. It is your debt stock that is the issue. So our debt stock is actually rising”
He said the rise in the debt stock could be a reason the Finance Minister, Ken Ofori Atta failed to mention it in the 2018 Budget Statement in Parliament as well as the President’s inability to mention it at the recent Meet-The-Press
event.
event.
ahtoronline.com|Ghana
