Ghana’s Debt Stock Hits GH¢575bn; Debt To GDP Ratio Now 93.5%

Ghana’s total public debt stock has shot up to GH¢575.7 billion at the end of November 2022, according to new data released by the Bank of Ghana. The new debt figure brings Ghana’s debt to Gross Domestic Product (GDP) ratio to 93.5% from 75.9% in September 2022. The Bank of Ghana’s January 2023 economic and financial data summary revealed that the debt stock increased by GH¢108.3 billion between September and November 2021.

The external component of the country’s public debt shot up to GH¢382.7 billion in November 2022, equivalent to 62.1% of GDP. This was from GH¢271.7 billion in September 2022. The Government of Ghana is currently facing serious liquidity challenges and is unable to service its debts.

In a bid to give it some respite, government announced a domestic debt exchange programme last year and said that an external restructuring was being negotiated with creditors. The IMF has said a comprehensive debt restructuring is a condition of its support.

The country has been struggling to refinance its debt since the start of 2022 after downgrades by multiple credit rating agencies on concerns it would not be able to issue new Eurobonds. According to the Bank of Ghana, the total public debt is defined as Central Government debt excluding State Owned Enterprises/Special Purpose Vehicles Debt.