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Ghana’s national debt now GHc291.6b – Kyei Mensah Bonsu

Caretaker Minister of Finance, Osei Kyei Mensah-Bonsu has disclosed Ghana’s debt stock is currently at 291.6 billion Ghana’s national debt now GHc291.6b – Kyei Mensah Bonsu

Caretaker Minister of Finance, Osei Kyei Mensah-Bonsu has disclosed Ghana’s debt stock is currently at 291.6 billion cedis with 76.1% GDP as compared to 2016 where the debt stock was 122 billion cedis and a GDP of 56.9%.

Mr. Mensah-Bonsu indicated that the push in the country’s deficits and debts is a result of the COVID-19 outbreak which has caused a global scourge and brought the world to a standstill for several months.

Presenting the budget on Friday, March 12, 2020, Osei Kyei Mensah-Bonsu who is also the Member of Parliament for Suame Constituency explained that the fiscal impact of COVID-19 was GHc 19.7 billion, cost of financial sector clean-up was GHC 21 billion while GHc 12 billion was the cost of Excess Capacity charges paid to IPPs.

“The total public debt has increased from GHS122 billion, which is 69% of GDP to GHS291.6 billion, which is 76.1% of GDP, as of the end of December 2020.”

“Included in the debt stock and the debt to GDP ratio are the following non-recurrent burdens that we had to deal with as a matter of urgency: the physical impact of COVID-19, which is 19.7 billion; the cost of the financial sector clean-up, which is 21 billion; and the cost of excess capacity charges paid to IPPs, which is also 12 billion,” the Majority leader added.

Osei Kyei Mensah-Bonsu maintained that “If these expenditures are excluded and the drop in GDP growth in 2020, primarily attributable to COVID-19, is taken into account, the total stock of debt for 2020 would have been approximately GHS239.9 billion, implying a dent to GDP ratio of 58.7%.”

 

By: Bernard Ralph Adams | Originalfmonline.com | Ghana

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