Ghana’s debt unchanged at ¢575.7bn – BoG

Ghana’s public debt stock remained unchanged at ¢575.7 billion at the end of November 2022, about 93.5% of Gross Domestic Product, the Bank of Ghana’s March 2023 Summary of Economic and Financial Data has revealed.

The country has already undertaken a Domestic Debt Exchange Programme where there was about 85% participation from investors, largely institutional. 84.91% of ¢97.7 billion of “eligible” domestic bonds were tendered and accepted.

Presently, the nation is engaging some of its external creditors in order to conclude the external debt restructuring by the end of March 2023.

Finance Minister, Ken Ofori-Atta had travelled to China yesterday March 23, 2023, to negotiate with the Chinese government which holds about $1.7 billion of Ghana’s debt, to restructure the country’s debt. The meeting according to the Finance Minister was successful, saying, China has given Ghana positive assurances on reaching an agreement with the government.

According to the data from the Central Bank, the external component of the total public debt shot up to $29.2 billion (¢382.7 billion) in November 2022, equivalent to 62.1% of GDP.

Ghana had suspended payments on most of its external debt, in December 2022, defaulting, as the country struggles to rebalance the economy.

In terms of the domestic debt, it stood at ¢194.6 billion at the end of December 2022, about 31.6% of GDP. The January 2023 Summary of Economic and Financial Data quoted the figure at ¢194.7 billion, approximately 31.6% of GDP.

The report again did not provide data for the financial sector resolution debt and other liabilities such as the energy sector debt.

Meanwhile, the government’s fiscal deficit to GDP narrowed to 8.1% in December 2022, as against 9.8% in November 2022.

Finance Minister assures Ghana is making progress towards securing a deal with China

The Finance Minister, Ken Ofori-Atta, today March 24, 2023 stated that Ghana was making progress towards securing a debt restructuring deal with China.

In a tweet on social media, Mr. Ofori-Atta disclosed that China has given Ghana positive assurances on reaching an agreement with the government.

“So far, had very positive and encouraging meetings in China. Looking forward to securing external assurances very soon, even as we pass our outstanding domestic revenue bills back home. Great progress on all fronts”, he pointed out.

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