Ghana’s debt burden dropped from 58 per cent in 2007 to 49 per cent as at the end of June this year.

The current figure is said to be the lowest in 50 years and a significant reduction in the trend of the debt burden since 2000 when it reached 189 per cent.

“The reduction in the nation’s total debt burden has been the result of various debt management policies among which is the subscription to the HIPC initiative since 2001,” a statement issued by the Government Spokesperson on Finance and Economy, Mr Kwaku Kwarteng, said.

It said the debt burden had consistently reduced to 147 per cent in 2001, 140 per cent in 2002, 128 per cent in 2003, 98 per cent in 2004, 83 per cent in 2005, and 46 per cent in 2006.

The country’s stock of domestic debt (gross) as at the end of June 2008 was GH¢4,005.9 million, representing 24.6 per cent of the gross domestic product (GDP).

It said the stock of external debt as at the end of June this year was $3,809.3 million, representing 24.1 per cent of GDP.

“The debt burden of 49 per cent GDP is a remarkable improvement on the nation’s debt of 189 per cent of GDP at the end of the year 2000,” the statement noted.

It said by the close of December 2000, Ghana’s external debt stood at $6,296 million with an internal debt stock of GH¢785.45 million and a nominal GDP of GH¢2.72 billion, bringing the total debt burden to 189 per cent of GDP.

“This placed a huge load on the economy, making growth almost impossible,” the statement indicated, adding that fortunately, the trend had completely reversed since 2001.




Source: Daily Graphic