By Jibril Abdul Mumuni, GNA
Accra, Aug. 29, GNA – Ghana’s provisional public debt stock increased to GHS719.52 billion at the end of June 2026, representing 45.0 per cent of Gross Domestic Product (GDP), says the Bank of Ghana’s latest Monetary Policy Report.
The figure rose from GHS641.11 billion, equivalent to 44.7 per cent of GDP, recorded in December 2025.
The report attributed the increase to domestic borrowing as Government moved to build buffers for future debt service obligations and support budget financing.
As of June 2026, domestic debt and external debt accounted for 54.4 per cent and 45.6 per cent of the total public debt stock, respectively.
The Bank of Ghana stated that domestic debt increased significantly during the review period in line with the Government’s net domestic financing target and strategy to strengthen its capacity to meet upcoming debt service commitments.
According to the report, domestic debt rose to GHS391.12 billion at the end of June 2026 from GHS333.76 billion in December 2025, representing an increase of GHS57.36 billion.
The increase was driven by the reopening of the bond market in March 2026, tap issuances of medium and long-term debt instruments, and the recapitalisation of the Bank of Ghana.
The report noted that Government was also taking advantage of relatively lower domestic borrowing costs, which were considered sustainable.
Meanwhile, the stock of external debt increased in local currency terms to GHS328.40 billion in June 2026 from GHS307.36 billion in December 2025.
The Bank explained that although external debt declined in foreign currency terms due to principal repayments, the depreciation of the Ghana cedi increased the value of external obligations when expressed in local currency.
Regarding the composition of external debt, multilateral creditors remained the largest source of financing, accounting for 41.9 per cent of total external debt as of June 2026.
Bilateral creditors accounted for 20 per cent, while commercial and international capital market debts represented 9.2 per cent and 29.0 per cent, respectively.
The report further indicated that short-term instruments remained the dominant component of domestic debt, reflecting strong investor demand for government securities, particularly 364-day Treasury bills.
Short-term, medium-term and long-term instruments constituted 41.0 per cent, 39.1 per cent and 19.7 per cent, respectively, of the domestic debt stock.
The Bank of Ghana said the increase in domestic debt formed part of efforts to build sufficient buffers in the Sinking Fund to meet large debt service payments expected from maturing bonds in 2027 and 2028.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni