Ghana is planning to borrow another $2.3 million to meet financial obligations

The amount will be from various financial instruments in the country.

The Bank of Ghana (BoG) stated this in a report published on its website on Monday, May 20, 2019.

The report seen by Business Insider SSA by Pulse shows that out of the total amount, the government will use $2 million (GH¢11.53 million) to roll over maturities. The remaining will be used to meet the government’s financing requirements.

The report also shows that this is slightly higher than the government’s debt instruments within the same period for the previous year.

Government of Ghana borrows $2.18 million in Q2 2018

In the second quarter of 2018, the government borrowed an amount of $2, 177 million (GH¢11,325.00) million, out of which $1,682 million (GH¢8,748.00 million) was used to roll over maturities.

Obligations to service debt have also increased significantly by more than a quarter within the same period between the two years.

Ghana’s debt profile keeps increasing

The BoG’s Summary of Economic and Financial Data released in the first quarter of 2019 showed that Ghana’s debt stock increased by 21.5 percent as of the end of 2018, adding $5.9 billion (GH¢30.6 billion) to the $27.4 billion (GH¢142.6 billion) debt of 2017.

Ghana’s debt stock, therefore, hit $33.3 billion (GH¢173.2 billion) and its external debt at the end of 2018 stood at $16.6 billion (GH¢86.3 billion). The two represent 28.9 percent and 29.1 percent of GDP, respectively.

The domestic component of the total debt stock was $16.7 billion (GH¢86.9 billion).