By News Desk
Ghana’s total debt has dropped by some GH₵139 billion as of June 2025, according to official records from the Ministry of Finance and the Bank of Ghana.
The country’s total public debt stood at approximately GH₵769.4 billion at end‑March 2025 or 49.5 billion U.S. dollars (USD), about 55% of gross domestic product (GDP).
As of June 2025, the debt‑to‑GDP ratio held at 43.8%, down sharply from 61.8% in December 2024, a nearly 18‑point decline in six months.
FY 2024 figures previously indicated a ratio around 70.5% after Eurobond haircuts and GDP rebasing.
Trading Economics expects Ghana’s government debt ratio to reach approximately 67% by the end of 2025 based on macroeconomic modelling.
Domestic debt as of June 2025 stood at GH₵312.7 billion, about 22.3% of GDP, while External debt in June this year also stood at GH₵300.3 billion, or 21.4% of GDP, slightly up from May levels
In March 2025, external debt cost 28.5 billion USD or 28.5% of GDP, while domestic debt was GH₵326.9 billion or 23.4% of GDP.
In January 2025, Ghana formalized a debt-restructuring MoU with its official creditors, securing major relief on repayments and servicing terms.
In June 2025, Parliament approved a debt relief deal worth 2.8 billion USD involving 25 creditor countries, including China, France, the US, UK, and Germany, with restructured repayment schedules pushed to 2039–2043, at low interest rates between 1–3%.
Ghana exited its sovereign default earlier by restructuring approximately 13 billion USD in Eurobonds, resulting in about 4–5 billion USD in reductions, laying the groundwork for debt sustainability.
Ghana is under a 3 billion USD International Monetary Fund (IMF) Extended Credit Facility (ECF), approved in May 2023. As of early July 2025, the fourth review was completed, unlocking an additional 367 million USD, bringing total disbursements to around 2.3 billion USD.
Fitch upgraded Ghana’s rating to B‑ with a stable outlook in June 2025, forecasting a primary surplus of 0.5% of GDP in 2025, and an overall deficit of 3.6%, benefiting from the October 2024 Eurobond restructuring efforts.
The minority New Patriotic Party in Ghana’s Parliament has sharply criticized the incumbent government for taking credit for debt reduction initiatives largely implemented during the prior administration, arguing that much of the credit belongs to the previous government’s restructuring efforts (Eurobond relief, 5 billion USD cancellation, service savings of 4.7 billion USD.
Disputes persist over whether “baby multilateral” creditors (like Afreximbank and TDB) should be included in restructuring frameworks, which may delay full exit from default and complicate future borrowing costs
Ghana has made meaningful progress in lowering its public debt burden, with the debt-to-GDP ratio dropping to 43.8% by mid‑2025.
This improvement stems primarily from debt restructuring, fiscal consolidation, economic growth, and IMF support.
Nevertheless, structural risks remain: dependence on external financing, currency volatility, contested creditor status issues, and political debates over credit and implementation. Enditem
Source: Ghana Eye Report
Share Us
