Ghana’s Debt Stock Ballooned GHS391.9 billion
Have you heard about Ghana’s Debt stock? Ghana’s debt currently goes beyond control which is estimated at over Ghc391.9 billion as the data of the Bank of Ghana proves.
From the report of the central bank of Ghana, it is said to have hit aboutUS$55.1 billion by March 2022. According to a news article cited on classfmonline.com, though the country’s debt dropped a little bit to $3 billion in the first quarter of the year 2022, it has increased again due to the fall of the Ghana cedi against the USD.
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The debt of Ghana was about GHc351.7 billion by January 2022 but was increased to over an additional GHc40 billion. Ghana’s debt stock ballooned to a GDP ratio of 78%. It is indeed pathetic to see a middle-income country carrying a debt while disregarding the prospect and the next generation
The minority in Ghana’s parliament earlier this year prompted the government to get a debt sustainability measure to reduce the external borrowing of the country. The current domestic component of the country’s debt also ballooned to Ghc8 billion from Ghc181.9 billion to over Ghc189.9 billion in March 2022. This figure represents about 38% of Ghana’s projected GDP for the year.
We cannot also forget the external component of the debt which has also increased to over Gh32 billion in the first 3 months of the year. It amounted to an increase from Ghc169.8 billion in January 2022, to Ghc201.9 billion in March 2022.
Other international organizations are advising the government to take proactive measures to handle the debt of the Republic of Ghana. Check: Kevin Tailor won case against Kennedy Agyapong
There are so many other bodies like the IMF also warning the government to take the best policies to help boost investors’ confidence in the country due to its debt distress.
Upon realizing the difficulty in accessing financial support and the measures to raise more revenue, the government implemented the controversial electronic levy to help get internal revenue to support its financial challenges.
