19 September 2008
Ghana's total debt burden has dropped to one of its lowest levels in fifty years. At the close of June 2008, the stock of domestic debt (Gross) was GH¢ 4,005.9 million representing 24.6 percent of Gross Domestic Product (GDP).
The stock of external debt at the end of the first half of 2008 was US$ 3,809.3 million, representing 24.1 percent of GDP. This brought the total public debt stock to 49 percent of GDP by the end of June 2008.
This was contained in a statement signed by government's spokesman on Finance, Mr. Kwaku Kwarteng and released in Accra on Thursday.
The debt burden of 49% GDP, according to Mr. Kwarteng is a remarkable improvement on the nation's debt of 189% of GDP at the end of the year 2000.
By the close of December 2000, Ghana's external debt stood at US$ 6,296.00 million. The internal debt stock was GH¢ 785.45 million.
With a nominal GDP of GH¢ 2.72 billion at the end of December 2000, this has put the total public debt burden at 189% of GDP. This placed a huge load on the economy, making growth almost impossible.
Fortunately, the trend has completely reversed since 2001. From 189% in 2000, it dropped to 147% by the end of 2001, to 140% by the end of 2002, to 128% by the end of 2003, to 98% by the end of 2004, to 83% by the end of 2005, to 46% by the end of 2006, to 58% by the end of 2007, and now to 49% at the close of the first half of 2008.
The reduction in the nation's total debt burden has been the result of various debt management policies (among which the subscription to the HIPC initiative) by Ghana since 2001.
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