Ghana Owes Bretton Wood Institutions, Others $7.9bn

The debt spiked up in the full year of 2020 due to the covid-19 impact on the economy, which resulted in increased borrowing from the Bretton Wood Institutions, as well as the African Development Fund.

The Bank of Ghana has released a data which showed that the country’s multilateral debt component owed to Bretton Woods Institutions of the external debt stood at $7.9 billion as at the end of September 2020.

This is an addition of $117.31 million (1.5%), compared to the level of $7.81 billion recorded at the end of the second quarter of 2020. The debt spiked up in the full year of 2020 due to the covid-19 impact on the economy, which resulted in increased borrowing from the World Bank and the International Monetary Fund, as well as the African Development Fund.

According to data from the Bank of Ghana, the multilateral debt accounted for 32.7% of the total debt stock at the end of the third quarter of 2020.

Debts owed the International Capital Market however stood at $10. 2 billion, representing the highest percentage share of 42.1% of the total external debt stock as of September 2020.

This is compared to 37.9% for the same period in 2019. The stock position showed a marginal decline of $15.99 million (0.2%) compared to the level of $10.2 billion registered at the end of the previous month.

The bilateral component of external debt stock for the third quarter of 2020 was $1.23 billion and represented a share of 5.1 per cent of the total external debt stock, compared with 5.9% for the same period in 2019.

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On the other hand, commercial debts at the end of September 2020 totaled $2.2 billion, and constituted 9.4 percent of the total external debt stock.

This was $57.87 million, which is 2.6% higher than the level of $2.2 billion recorded in the second quarter.

Other concessional debts totaled $1.62 billion at end of the third quarter and constituted 6.7% of the external debt stock.

This indicated a decline of $26.69 million (1.6%) compared with the previous quarter’s position of US$1.65 billion.

According to the data, the external component of the debt stood at ¢139.6 billion ($24.4 billion), about 36.2% of GDP.

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