The depreciation of the cedi and disbursements from creditors have significantly impacted the nation’s public debt, adding GH₵134 billion in just six months.
This increase has raised the public debt from GH¢608 billion in 2023 to GH₵742 billion in the first half of 2024.
In 2022, the depreciation of the cedi contributed GH₵93 billion to the country’s external debt stock.
Minister for Finance, Dr. Mohammed Amin Adam, announced this during the mid-year budget review in parliament.
This review is mandated by Section 28 of the Public Financial Management Act, 2016 (Act 921).
The recent development reflects a 22% increase in Ghana’s debt due to the cedi’s depreciation and disbursements from creditors.
The current debt stock includes GH¢452 billion in external debt and GH¢290 billion in domestic debt, accounting for 60.9% and 39% of the total debt stock, respectively.
External and domestic debt represent 43% and 27.6% of the Gross Domestic Product (GDP), respectively.
Dr. Amin highlighted that domestic financing of the debt is expected to amount to GH¢38.9 billion, representing 3.8% of the revised GDP and 71.9% of the total financing for 2024.
The revision is largely attributed to a reduction in interest payments by GH₵7.9 billion, reflecting the impact of external debt restructuring on external interest payments.
The Minister emphasized that the government would continue to build on the 2024 Medium Term Debt Strategy (MTDS) implemented in the first half of the year.
This strategy will focus on an appropriate financing mix aimed at supporting fiscal consolidation without compromising macroeconomic stability and debt sustainability.
