Chairman of the finance committee of parliament has presented the public debt management report for the 2018 financial year.
The reports state that government in 2018 took several measures to ensure efficient and effective management of public debt in compliance with debt management strategy approved by cabinet and in line with the financing requirements as stipulated in the 2018 budget statement and economic policy.
According to the report government’s medium-term management strategy is to bring the public debt level to below 65% of GDP over the medium term.
It also adds that 2018 was the successful insurance of Ghana’s us$2.0-billion-euro bond in May 2018 which was the sixth time Ghana had participated in the international capital market.
The 2018-euro bond consisted of US$ 1.00 billion 10year bond and the landmark 30year bond of the same amount priced at 7.625 Percent and 8.625 Percent respectively.
The government also supported the financial sector reforms and clean up the regulator, the bank of Ghana impacted the public debt significantly in 2018.
It continues to say that the government in 2018 continued to limit the level of commercial borrowing to US$ 500.00million in line with programme targets under the IMF programme.
The government also enacted the fiscal responsibility Act, 2018 and inaugurated the fiscal responsibility Advisory ad fiscal stability advisory councils.
As at December 2018, USD – denominated loans constituted 62.2 per cent of the total debt stock.
Story By:Gladys Emefa Gemadzie