Ghana\u2019s total public debt stock has increased once again according to new data released by the Bank of Ghana.<\/p>\n\n\n\n
The debt stock which ended the first quarter of 2021 at GH\u00a2 304.6 billion, increased by almost GH\u00a2 30 billion in April and May.<\/p>\n\n\n\n
This saw Ghana\u2019s total public debt as of the end of May 2021 rising to GH\u00a2 332.4.<\/p>\n\n\n\n
The new debt figure brings Ghana\u2019s debt to Gross Domestic Product (GDP) ratio to 76.6% as of the end of May.<\/p>\n\n\n\n
This is the highest recorded so far in the past year, slightly higher than the debt to GDP ratio of 76.1% recorded at the end of 2020 according to data from the central bank.<\/p>\n\n\n\n
External Debt<\/strong><\/p>\n\n\n\n A breakdown of the debt numbers shows that the component of the debt secured outside the country after remaining relatively stable in the first quarter rose significantly by about GH\u00a2 20 billion from GH\u00a2 141 billion at the end of March 2021 to GH\u00a2 161.5 billion at the end of May this year.<\/p>\n\n\n\n The external debt component as of the end of May 2021 made up 37.2% of the total value of the economy, which is projected to be about GH\u00a2 434 billion for 2021.<\/p>\n\n\n\n On the other hand, the component of the debt secured locally increased steadily in the first 5 months of 2021.<\/p>\n\n\n\n When compared with the figure recorded at the end of the first quarter, Ghana\u2019s domestic debt rose by about GH\u00a2 7 billion, bringing total domestic debt to GH\u00a2 170.8 billion at the end of May this year from the GH\u00a2163.6 billion recorded at the end of March this year.<\/p>\n\n\n\n The new figure represents 39.4% of the projected GDP for 2021.<\/p>\n\n\n\n The domestic component of the total public debt contains the financial sector resolution bond, which was GH\u00a2 15.2 billion at the end of May 2021.<\/p>\n\n\n\n According to the International Monetary Fund\u2019s 2021 article IV consultation press release, which contains their staff report and statement by the Executive Director for Ghana, the IMF\u2019s Debt Sustainability Analysis (DSA) shows that Ghana remains at high risk of external and overall debt distress under the baseline, even though public debt is assessed as sustainable going forward.<\/p>\n\n\n\n The Bretton Woods institution is meanwhile projecting Ghana\u2019s Debt-to-GDP ratio to rise to 83.5% by the end of 2021.<\/p>\n\n\n\nDomestic Debt<\/strong><\/h4>\n\n\n\n