Cedi depreciation hikes Ghana’s debt to GHS742.0 billion in first half of 2024

Dr. Mohammed Amin Adam, Minister for Finance, says cedi depreciation hiked Ghana's debts from an initial amount of GHS608 billion in 2023 to GHS742.0 billion in the first half of 2024. He said the development showed an increase of 22 percent in Ghana's debt due to the effect of the Cedi depreciation and disbursements from creditors. The Minister said the debt stock consisted of external debt of GHS452 billion and domestic debt of GHS290 billion, representing 60.9 percent and 39 percent of the total debt stock, respectively. He stated that external and domestic debt accounted for 43.0 percent and 27.6 percent of of Gross Domestic Product (GDP), respectively. The Finance Minister said this at the mid-year budget review in parliament, consistent with Section 28 of the Public Financial Management Act, 2016 (Act 921). According to the Act, the Minister is required to provide a mid-year fiscal policy review of the government's budget statement and economic policy. Dr. Amin said the domestic financing of the d ebt would amount to GHS38.9 billion, representing 3.8 percent of the revised GDP and 71.9 percent of the total financing for 2024. The revision, he noted, was largely on the back of interest payments, which had been revised downward by GHs 7.9 billion to reflect the impact of the external debt restructuring on external interest payments. Dr. Amin said the government would continue to build on the 2024 Medium Term Debt Strategy (MTDS) implemented in the first half of the year. The strategy, he emphasised, would focus on an appropriate financing mix aimed at supporting fiscal consolidation without compromising macroeconomic stability and debt sustainability. Source: Ghana News Agency

Related Post