Pulse.com.gh logo

Post Eurobond IMF projects public debt to hit 72% of GDP by end of year

  • Published:

Ghana's public debt will by end of this year account for about 72 percent of the total value of the economy, that is the projection from the International Monetary Fund in its new fiscal monitor report.

The report was released in Lima, Peru Wednesday ahead of the Fund’s annual meetings.

Current figures by the Ministry of Finance put the country’s public debt – as at July this year – at around 83 billion Ghana cedis, which translates into 62 percent of GDP. 

The IMF’s fiscal monitor report, which assess the financial position of over 100 countries around the world, is forecasting that Ghana’s public debt will increase further in the coming months to cross the dreaded 70 percent mark by end of year.

Already the IMF has classified Ghana as a High risk of Debt Distress Country. This means that immediate measures must be taken to reduce Ghana’s public debt, because the country’s current financial position might make it difficult to pay its debts on time.

When a country is classified as High Debt Distress country, the IMF usually prescribes a freeze on borrowing by that country until it makes some progress in reducing its debts.

Ghana’s rising public debt has already affected the country’s ability to secure good assessment from credit rating agencies.

Some agencies are even warning investors outside the country that it might be risky for them to lend money to Ghana.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Breaking Otabil finally breaks silence on banking controversiesbullet
2 Capital Bank Collapse Here are the roles of a non-executive board chairbullet
3 Nana Appiah Mensah Menzgold boss apologises to BoG after Twitter rantbullet
4 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
5 Bank Collapse Capital Bank Board misused GHC 610 million from...bullet
6 Banking Crises Sahel Sahara and Omni Bank become latest to mergebullet
7 Collapse Bank Here’s what former staffs of Capital Bank are...bullet
8 Increment Fuel prices to go up again – IESbullet
9 Collapsed Banks Here are the auditing firms for the 7...bullet
10 Banks Collapse Gov’t to take action against those...bullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Money Alert Meet Africa's richest womanbullet
5 Support Finance minister buys Kantanka carbullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Tech 6 reasons you should buy an iPhone SE instead of any...bullet
9 New Phone Nokia’s MWC 2018 event in 7 minutesbullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet