Ghana’s debt rises to GH¢761bn, Cedi depreciation blamed.

Ghana’s debt rises to GH¢761bn, Cedi depreciation blamed.

Ghana's provisional nominal central government debt stood at GH¢761.1 billion as of July 31, 2024, equivalent to US$51.1 billion, as announced by Finance Minister, Dr. Mohammed Amin Adam during the monthly Economic Update at the Finance Ministry in Accra.

This amount marks a significant increase from the previous figure of GH¢587.7 billion, which was equivalent to US$53.5 billion. The apparent paradox of a rise in cedi terms and a decrease in US dollar terms is primarily due to the cedi's depreciation, as clarified by Dr. Adam.

This development highlights the intricate dynamics at play in Ghana's economy, where exchange rates have a substantial impact on the country's debt burden.

The Finance Minister's update offers a glimpse into Ghana's economic situation, emphasizing the importance of ongoing monitoring and management of the country's debt levels.

“As of July 31, 2024, Ghana’s provisional nominal central government debt stood at GH¢761.1 billion, equivalent to US$51.1 billion. This represents a nominal increase from the previous amount of GH¢587.7 billion, equivalent to US$53.5 billion.

“The increase in cedi terms and decrease in US dollar terms is attributed to a combination of factors, including cedi depreciation, disbursements from multilateral institutions, and domestic financing of the budget”, he stated.

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Source: HR Forum News