The data also shows that the stock of debts went up by ¢5.1 billion from May this year to August.
From the data, the domestic debt accounted for ¢73.8 billion cedis representing 30.6 percent of the total value of the economy. Also, $18.2 billion of the total debt were loans taken from outside the country.
The ¢159.4 billion debts translate into 65 percent of Ghana’s Gross Domestic Product (GDP). This means even though the country’s debt is going up in nominal terms, it has not gotten too serious threatening levels to the economy.
According to data put out by the Ghana Statistical Service in April, the value of the country's economy at about ¢215 billion.
Possible reasons for debt stock increase
There are no official reasons for now as to what caused the debt numbers to increase by over 5 billion cedis in just three months to ¢159.4 billion cedis.
However, Joy Business understand some fresh borrowing in Eurobonds, treasury bills issuance and cedi’s depreciation might have led to a spike in the debt numbers over the past three months.
Sources also say recent ¢2.2 billion bond issued to deal with the UT and Capital Banks collapse could have also contributed to the increase.
Some of the borrowings, they say was also used to pay off expensive debts that were maturing.
Since the beginning of the year, the debt stock has gone by almost ¢14 billion cedis, which could be linked to the $2 billion Eurobond raised this year.
Borrowings for Half Year
According to government’s issuance calendar for the first half of this year, it borrowed about ¢22.4 billion through bonds and Treasury bills.
However, only ¢4.6 billion can be classified as fresh borrowings which were used to meet the government’s financing needs. The remaining ¢17.8 billion was used to finance debts that were maturing.
The calendar showed that it took ¢11.3 billion in the second half of this year and ¢11.1 billion in the second quarter of this year. Read Full Story
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