July 21, 2015

Ghana’s provisional debt stock as at end of May, 2015 stood at GH¢90.0 billion representing 67.53 percent of GDP.

This was made up of GH¢53.8 billion and GH¢36.2 billion for external and domestic debt, respectively.

Finance Minister Seth Terkper who disclosed this on the floor of Parliament while presenting the Mid-Year Review of the 2015 Budget said it must however, be noted that, the growth in public debt as at the end of May 2015 is largely on account of the significant risk of exchange volatility which affected more than 50 percent of the entire public debt stock.

He added, the expectation is that, the significant recovery of the Cedi against the major trading currencies will fundamentally reduce the ratio of public debt to GDP.

Touching on the revised 2015 macroeconomic targets, Mr Terkper noted that developments in both the domestic and global economic environment have necessitated a revision of the macroeconomic framework and targets in the 2015 Budget.

He said while the situation has started to improve, the recent exchange rate depreciation due to high outflows of foreign exchange, and the rising inflation posed downside risks to achieving the growth target for the year, adding that this situation is certain to improve.