Ghana’s total debt stock is now standing at GH¢154 billion as at the end of May 2018, MyNewsGH.com can report.
This is according to data from the Bank of Ghana.
The data shows that in three months, i.e, between February 2018 and May 2018 alone, Gh¢9 billion was added to Ghana’s debt stock because as at February this year, Ghana’s debt was GH¢145 billion based on Bank of Ghana’s summary of Economic and Financial data. But at May ending, the figure is now 154 billion cedis.
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The provisional debt stock of GH¢154 billion would translate into 63.7, per cent of GDP at the end of May 2018 compared to 66.8 per cent for the same period in May 2017.
Last year, the Institute of Fiscal Studies (IFS) projected that Ghana’s public debt could hit a record level of GH¢150 billion before the end of 2018.
According to the Executive Director of IFS, Professor Newman Kusi, the government’s indication to issue bonds and other project financing mechanisms would increase the debt ratio to an uncontrolled state.
“The whole public debt was GH¢138.6 billion, that is even as at September if you add the ESLA bond and you add the bond that we issued in November, and then you add the GH¢10 billion that government now plans to borrow, it would take us somewhere more than GH¢150 billion.”
He spoke on the sidelines of a roundtable discussion on implications of the country’s debt on the economy.
He explained why the end of year debt for 2017 is around GH¢146.2 billion, a situation he thinks was unnecessary because some of the projects were unprofitable.
But even though the country’s debt stands at 154 billion cedis, it is an improvement in terms of Debt to GDP ratios compared to last year.