The World Financial institution has cautioned Ghana in opposition to extreme borrowing as the overall debt inventory of the nation hits GHS214.9 billion.
World Financial institution Nation Director Frank Laporte urged Ghana to watch out with growing the nation’s debt inventory with recent borrowings.
The warning comes after the nation points a profitable three billion {Dollars} Eurobond which got here at a coupon fee described as the most cost effective since Ghana began issuing Eurobonds
The Nation Director who was in Parliament yesterday stated the nation with a moderate-high danger of debt misery should borrow on proper phrases.
“At the moment Ghana is in the situation what World Bank describes as moderate-high risk of debt distress so of course the country needs to be careful and the country is at the stage where things are critical, I am confident that the Finance Minister and his team are fully aware of that and some borrowing which not totally a bad thing but you have to borrow on the right terms..”
$3bn Eurobond money to hit BoG’s account by subsequent week
The Finance Minister Ken Ofori Atta has disclosed that every one different issues being equal the $three billion Eurobond cash would hit Financial institution of Ghana’s account subsequent week.
This in keeping with him would considerably enhance the nation’s worldwide reserves.
He added that “Government is committed to supporting the Bank of Ghana to firmly stabilize the cedi throughout the year and even beyond”.
Mr Ofori-Atta famous that one other $300 million would hit their accounts coming from the deliberate mining IPO in March.
Chatting with Pleasure FM in London, Finance Minister Ken Ofori Atta attributed the oversubscription of Ghana’s Eurobond to excessive investor confidence within the financial system.
Ghana’s public debt inventory hits GHS214.9bn
The nation’s complete debt inventory has hit GH¢214.9 billion ending November 2019.
This was contained within the January 2020 Financial institution of Ghana’s abstract of economic and financial knowledge launched Friday.
This was launched after the Financial Coverage Committee met earlier this week to assessment the well being of the financial system and set a brand new coverage fee for the market, which at present stands at 16 per cent. The speed typically influences the price of credit score within the nation.
The GH¢214.9 billion complete debt represents 62.1 per cent of Ghana’s-Debt-to-GDP ratio ending November 2019.
The $20.three billion (GH¢111.9 billion) of the debt had been borrowings executed by the federal government in {dollars} and from exterior the nation (that’s the exterior debt element). This represents 32.four per cent of the nation’s GDP.