Ghana has been named among the list of countries with high debt risk exposure by the World Bank.
This was uncovered in the International Development Association (IDA) fiscal report, which was among the World Bank FY21 reviewed budget summaries delivered on Monday, August 9.
Ghana was ninth on the list with India leading the list. Other African nations on the list are Nigeria, Ethiopia, Kenya, Tanzania, and Uganda.
List Of IMF’S Countries With High Debt Risk Exposure
- India with $22 billion IDA debt stock
- Bangladesh with $18.1 billion IDA debt stock
- Pakistan with $16.4 billion IDA debt stock
- Vietnam 14.5 Billion IDA debt stock
- Nigeria with 11.7 Billion IDA debt stock
- Ethiopia with $11.2 Billion IDA debt stock
- Kenya 10.2 Billion IDA debt stock
- Tanzania with 8.3 Billion IDA debt stock
- Ghana with 10.6 Billion IDA debt stock
- Uganda with 10.4 Billion IDA debt stock
Ghana’s Public Debt Stock
Ghana’s public debt stock shot up by ¢27.8 billion in April 2021 and May 2021 to ¢332.4 billion, the latest Summary of Economic and Financial Data by the Bank of Ghana has revealed.
This is equivalent to $57.9 billion, about 76.66 percent of Gross Domestic Product.
In March 2021, the total debt stock stood at ¢304.6 billion, and the significant increase in the debt stock is due to the $3 billion Eurobond raised in March 2021 as well as the huge borrowing on the domestic market.
In April 2021, the public debt stock was ¢328.0 billion. This means ¢23.4 billion new debt was added to the total debt stock.
The domestic debt went up by ¢7.2 billion to ¢170.8 billion at the end of May 2021 despite some under subscription of Treasury bills sale. This is equivalent to 39.4% of GDP.
The external debt also went up by $3.5 billion (¢20.3 billion) to $28.1 billion. This is approximately 37.2% of GDP.
However, the financial sector debt stood unchanged at ¢15.2 billion, equivalent to 3.5% of GDP.
But the debt could go down if assets of defunct banks are retrieved quickly to offset part of it.