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Opinions of Wednesday, 23 March 2016

Columnist: Kusi, Duncan

Ghana's debt: Governor come again

It is skeptic to believe that Ghana's debt is $25.6 million as published on Ghana web 21st March 2016.

If it was an error, then we should not believe the details to be true or accurate.

Our debt has become a heating debate and we have developed interest to know the truth surrounding it.

Recently, Dr Bawumia came out with his figures as $37 billion being our total debt and supported with facts.

Later on President Mahama also gave his figures as $24 billion without any supporting documents or the breakdown of the debt.

On the 16th March 2016 , from peace fm online, the Deputy Finance Minister also published that Ghana's debt stock was around $24 million with breakdown as supporting evidence. We can argue that there were some errors in his calculations because our debt is in billions not in millions.

I also miscalculated and came back with new figures of the debt to be in the region of $44 billion which I am still standing on it. I have the following facts as supporting evidence.


from myjoyonline
1. In 27th July, 2015, Our Finance Minister pointed out that Ghana debt was C90 billion but sustainable. In the same month the minister presented a budget supplement and wanted it to be approved by parliament and that was 865 million Cedis.

The following were gathered from Ghana Web

2. Ghana received a loan from international cocoa buying company in September and it was $1.8 billion
3. 6th October, AfDB ( African development bank) gave Ghana Airports a credit of $120 million
4. 8th October, Ghana floated $1 billion Euro bonds and they were over subscribed to $2 billion.
5. 21st October, AfDB gave a credit of $100 million to support agric sector
6. 27th October,another Euro bonds $500 millions were floated
7. 29th October Cedi bonds 1.5 billion were floated.


8. January 2016 the government borrowed 4.6 billion Cedis from Bank of Ghana.
9. February 2016 the government borrowed 6.03 billion cedis again.

If you covert the dollars into cedis and add up, our total debt could be around 120 billion Cedis and we should remember that when we take loan, we pay interest so if we are going to pay interest on the loans, then we should know that out debt would be around 140 billion Cedis.

If that amount is converted into $, our debt stock would be around $44 billion.

With these calculations, I can confirm to you that our public debt which was 76% of GDP was just a domestic debt but not the total debt even when you deduct january and february figures.

This also means that the true picture of our debt stock has not been shown to us because the President has different figures, Minister of finance has different figures, the Bank of Ghana Governor also has different figures then which one is true?

I can tell you none of them is true since the Ministry of Finance , Bank of Ghana and President have different figures so the Governor should come again.