President John Dramani Mahama has revealed that Ghana's public debt has dropped by nearly GHS150 billion in the past five months, largely due to the recent strengthening of the cedi.
Speaking on the economic outlook at the Annual Meetings in Abidjan on Tuesday May 27, Mahama explained that the depreciation of the cedi has historically been a major contributor to the country's rising debt levels.
He noted that because public debt is recorded in cedi terms, a weakening local currency results in a higher debt burden when measured against foreign-denominated loans. "One of the push factors for the debt is the value of the local currency.
Our debt continued to multiply because the cedi continued to grow weaker and so you needed more cedi.
