Finance Minister, Dr. Mohammed Amin Adam has indicated that the speed of accumulation of public debt is declining following the great progress made by the federal government in ts debt restructuring effort and the success of the fiscal consolidation programme.
Talking at a joint Worldwide Financial Fund media briefing, he mentioned key structural reforms to help development, enhance the Public Monetary Administration system, enhance income mobilisation, and help sound financial and trade coverage are starting to yield optimistic outcomes.
“Following the completion of home debt structuring of about GH¢203.4 billion in 2023, we reached settlement with the Official Creditor Committee (OCC) beneath the G20 Frequent Framework on eleventh June, 2024 to restructure Ghana’s official bilateral loans totalling $5.1 billion with an estimated debt service reduction of $2.8 billion between 2023- 2026. We additionally reached settlement with our Eurobond holders on nineteenth June 2024 to restructure Eurobonds amounting to $13.1 billion with a debt cancellation of roughly $4.7 billion and debt service financial savings from 2023 to 2026 of about $4.4 billion”.
“The speed of accumulation of public debt is declining following the great progress we now have made in our debt restructuring effort and the success of the fiscal consolidation programme”, he added.
The Finance Minister additionally mentioned the fiscal consolidation programme is progressing easily as Ghana’s major fiscal steadiness improved by over 4.5 proportion factors of Gross Home Product (GDP) in 2023 “and we’re dedicated to additional enhance the first steadiness to a surplus of 0.5% of GDP this 12 months and 1.5% of GDP within the 2025-2028 interval.”
He added that the fiscal efforts are supported by reforms to reinforce income mobilisation and streamline and streamline nonpriority expenditures, while increasing social safety programmes to mitigate the affect of fiscal adjustment on the poor.
Ghana’s public debt will increase by GH¢46.4bn to GH¢658.6 in two months of 2024
Ghana’s public debt elevated by GH¢46.4 billion within the first two months of 2024 to hit GH¢658.6 billion ($53.1 billion), information from the Financial institution of Ghana has revealed.
The overall public debt inventory of the nation is equal to 62.7% of Gross Home Product (GDP).
Based on the Central Financial institution’s Could 2024 Abstract of Financial and Monetary Information, the nation’s debt ended 2023 at GH¢611.2 billion, however shot as much as GH¢626.0 billion in January 2024 and subsequently to GH¢658.6 billion in February 2024.