Ghana crosses deadly 70% mark with ¢120 bn debt

Ghana’s total debt stock has reached 119.9 billion cedis as at November 2016, figures from the Bank of Ghana have shown. The debt also represents 71.9 percent of the country’s Gross Domestic Product (GDP). According to the Bank of Ghana’s Economic and Financial Data, the country’s debt ballooned from 112.3 billion cedis in September 2016 ...

Ghana’s total debt stock has reached 119.9 billion cedis as at November 2016, figures from the Bank of Ghana have shown.

The debt also represents 71.9 percent of the country’s Gross Domestic Product (GDP).

According to the Bank of Ghana’s Economic and Financial Data, the country’s debt ballooned from 112.3 billion cedis in September 2016 to the current figure.

By this, Ghana added 7.6 billion cedis to its debt stock in October and November 2016.

Of the debt, the domestic component amounted to 53.9 billion cedis accounted for 32.3 percent of GDP.

Also, the external component amounted to 66 billion cedis and accounting for 39.6 percent of GDP.

The development comes at a time that some economic watchers have criticized the increasing government’s borrowing levels for fear of hitting the 70 percent mark.

The rising borrowing and increased demands from public sector workers have contributed largely to increasing the country’s debts.

Meanwhile the statistics by the central bank has shown that the cedi has depreciated in relation to major trading currencies.

For instance the local currency has depreciated by 1.3%, 2.4% and 1.8% for the dollar, Euro and British Pound as at January 2017.

This was a further dip compared to a depreciation rate of 9.2% and 5.2% for the dollar and the Euro respectively.

Regarding revenue from major export commodities, Ghana realized 1,170.6 dollars per ounce from gold as at December 2016.

The figure represented a year to year change of 9.7 percent.

While revenue realized from crude oil and cocoa were 54 dollars per barrel and 2,381.8 dollars a tonne respectively.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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