July 19, 2024
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Ghana’s public debt fell by ¢14.2bn to ¢567.3 in September 2023; fiscal deficit on target

Ghana’s public debt fell by ¢14.2 billion between June 2023 and September 2023 to ¢567.3 billion, data from the Bank of Ghana has revealed.

This is equivalent to $51.0 billion, approximately 66.4% of Gross Domestic Product (GDP).

The decline in the country’s stock was due to the gains by the cedi against the dollar particularly during the month of September 2023 and the suspension of interest payment to external creditors.

According to the November 2023 Summary of Economic and Financial Data, the revised debt stock stood at ¢581.5 billion in June 2023, approximately 68.0% of GDP. It then went up to ¢584.0 billion ($53.0 billion) in July 2023, about 68.3% of GDP, and subsequently to ¢584.4 billion ($53.0 billion) at the end of August 2023.

The data from the Central Bank also disclosed that the external component of the total public debt stood at $29.4 billion (¢326.7 billion) in September 2023, lower than the $29.9 billion (¢328.6 billion) recorded in June 2023.

In terms of the domestic debt, it stood at ¢240.6 billion in September 2023, about 28.1% of GDP. This is a significant fall from ¢252.9 billion recorded in April 2023, approximately 29.6% of GDP.

The report again failed to provide data for the financial sector resolution debt and other liabilities such as the energy sector debt.

Fiscal deficit to GDP stood at 3.0% in August 2023

The report also revealed that the government’s fiscal operations were on target as the deficit to GDP stood at 3.0% in August 2023, as against 8.3% of GDP in December 2022.

The primary balance also stood at a deficit of 0.7% of GDP in August 2023. Ghana suspended payment of loans to its external creditors in December 2022 following the economic challenge the country faced.

It is currently negotiating a deal with the creditors to pave the way for the release of the second tranche of $600 million by December 2023.

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