Ghana in high risk of debt distress – Ofori-Atta

Delivering the 2023 budget statement and economic policy on the floor of Parliament on Thursday, Finance Minister, Ken Ofori-Atta noted that the sustainability of Ghana’s debt has been continuously affected by the negative impact of exchange rate depreciation, particularly on external debt, as well as the crystallization of significant contingent liabilities in recent years.

To this end, we will implement a debt exchange programme to address the challenges identified in the portfolio in collaboration with all relevant stakeholders including the Ghanaian public, investor community and development partners”, he said.

The end-September 2022 provisional figures indicate that total gross public debt stood at GH¢467,371.31 million (US$48,871.34 million), representing approximately 75.9 percent of GDP.

While assuring that government is committed to ensuring debt is brought to sustainable levels in the medium- to long-term, he further noted that government will continue to strengthen its oversight of all State Owned Enterprises, in particular, financial and energy sectors.

The Minister noted that in line with government’s objective to restore debt sustainability, concessional loans will continue to be the preferred financing option for projects.

“In line with our objective to restore debt sustainability, concessional loans will continue to be the preferred financing option for projects

Such financing will be determined within limits that are consistent with our debt sustainability programme.”