Ghana’s debt hits $25.6 billion


Data from the Bank of Ghana (BoG) reveal as at December 2015, Ghana’s total debt stood at $25.6 billion.

According to the Bank of Ghana’s summary of macroeconomic and financial data released on March, 18. 2016 as at December 2015 Ghana’s public debt was 25.6 billion dollars and in cedi terms 97.2 billion cedis.

Per the BoG’s data Ghana’s debt hit 97.2 billion cedis in December 2015 up from the 96.9 billion cedis recorded in November of the same year.

In October, 2015 the total debt was 96.3 billion cedis while in September 2015, it was at 91.6 billion cedis and in August of that same year 94.8 billion cedis.

Per the figures as at December 2015 the total debt stock of 97.2 billion cedis or 25.6 billion dollars cumulated to 72.9 percent of GDP.

Of this figure the external debt hit 57.8 billion cedis in December, 2015 which is 43.3 percent of GDP.

While in February domestic debt was 39.4 billion cedis making up 29.5 percent of GDP.

In January 2016, domestic debt went up to 40.6 billion cedis making up 25.6 percent of GDP, it however dropped to 39.9 percent in February 2016 making up 25.2 percent of GDP.

Debt figures contested

Figures from government over Ghana’s actual debt stock has been contested by Dr. Mahamudu Bawumia, Vice-Presidential Candidate to Nana Akufo-Addo.

President Mahama had early this year pegged the country’s debt stock at $24 billion.

But Dr. Mahamudu Bawumia had contested this figure, according to him is $37 billion.

Dr. Mahamudu Bawumia while addressing students of the Jasikan College of Education this month said  “In the last seven years alone under this NDC government, Ghana’s total debt has ballooned from GH¢9.5billion to a projected GH¢99billion by the end of 2015.

What is clear is that, 90% (i.e. GHC89.5 billion) of Ghana’s total debt since independence has been accumulated under this NDC government between 2009-2015 i.e. the last seven years,” he said.

He added that ‘ few months ago, President Mahama stated in Ho that 41% of Ghana’s external debt of $14 billion was accumulated by the NPP government between 2001 and 2008.

This is clearly a falsehood. The truth is that, as a result of the HIPC initiative and prudent borrowing, Ghana’s external debt stock actually declined from $6.1 billion in 2000 to $3.8 billion by 2008 (the first time in history).

The debt has since increased by $10.2 to $14 billion in 2015. So how is what the President said in Ho possible?

The facts therefore show that 72% of Ghana’s external debt stock and 90% of Ghana’s total debt stock was accumulated during the last seven years,” he noted.




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