Ghana’s public debt has continued it upwards trajectory, reaching 198 billion Ghana cedis or 39 billion US Dollars at the end of April, compared to 180.7 billion cedis or 35 billion dollars at the end of March, the central bank disclosed here over the weekend.

These were contained in the summary of economic and financial data of the country, released by Bank of Ghana over the weekend ahead of the Monetary Policy Committee (MPC) press briefing on Monday.

The bank said the ratio of the debt to Gross Domestic Product (Debt to GDP ratio) also increased to 57.5 percent in April, from 52.5 percent in March.

The country raised three billion US Dollars last March in Eurobonds which was split into three tranches with maturity periods of seven years with 8.75 percent coupon rate; 12 years with 8.125 percent coupon rate; and 31 years with 8.95 percent coupon rate.

Ahead of the Eurobond issue, the local cedi currency had lost more than eight percent of its value against international traded currencies.

The currency has however seen a slower rate of depreciation after the turbulent first quarter.

The external debt component of the public debt stood at 20.7 billion dollars at the end of April and the domestic component was about 19 billion dollars.

Ghana’s public debt is watched carefully by both domestic and international capital markets and rating agencies as excessive government borrowing makes the country’s credit rating go down on the global stage, while it crowds out private sector from the domestic capital market. Enditem


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