Ghana has been struggling with high levels of debt both internally and externally in recent years. According to data from the International Monetary Fund (IMF) and the World Bank. The country's debt-to-GDP ratio, which measures the amount of debt a country has relative to its economic output, has been steadily increasing since 2015.

High Debt to GDP- “Sika mpe dede economy”

Ghana's debt-to-GDP ratio and external debt as a percentage of GDP have increased over the last 5 years, driven by several factors such as a decline in economic growth, a fall in commodity prices and depreciation of the currency.

According to IMF data, Ghana's debt-to-GDP ratio was 63.3% in 2015, but by 2019 it had risen to 71.5%. Similarly, World Bank data shows that Ghana's total external debt as a percentage of GDP was 53.5% in 2015, but by 2019 it had risen to 63.1%.

This increase in debt has been driven by a combination of factors, including a decline in economic growth, a fall in commodity prices, and a significant depreciation of the Ghanaian Cedis. The country has also been grappling with high levels of inflation and a widening budget deficit.

In 2019, the NPP Government reached an agreement with the IMF for a $918 million Extended Credit Facility (ECF) to support the country's economic reform program.
High Public Debts – NPP’s fake business!

Ghana's debt burden is high, with internal debt at GH₵113.9 billion ($20.7 billion) and external debt at GH₵95.8 billion ($17.6 billion), of which a significant portion is from bonds issued on the international market,
The country's internal debt is composed of debt owed to domestic creditors such as banks, while external debt is debt owed to foreign creditors such as other governments, international organizations, and private sector investors.

According to the Bank of Ghana, as of December 2020, the country's total internal debt stood at GH₵113.9 billion ($20.7 billion) while the external debt stood at GH₵95.8 billion ($17.6 billion). The country's total debt stock is therefore GH₵209.7 billion ($38.3 billion).

One of the main sources of Ghana's external debt is bonds issued on the international market. In recent years, Ghana has been issuing Eurobonds to raise funds from international investors. As of December 2020, Ghana's outstanding Eurobonds stood at $8.4 billion, which is about 47% of its total external debt. With these debts in perspective mean more needs to be done to ensure a sustainable debt level and a stable economy.

Extended Credit Facility (ECF)- BROUHAHA

The IMF has identified several issues that have impeded Ghana's Extended Credit Facility (ECF) and measures to control spending and improve revenue collection, including weak public financial management, limited revenue mobilisation, high public debt, inadequate infrastructure, political instability, and limited private sector development.

The specificity of these issues are as follows:

1. Weak public financial management: The IMF has highlighted the need for Ghana to improve its public financial management, including strengthening budget preparation and execution, as well as improving accounting and financial reporting.

2. Limited revenue mobilisation: The IMF has noted that Ghana's revenue-to-GDP ratio is low compared to other countries in the region and that there is room for improvement in tax administration and compliance.

3. High public debt: Ghana's high public debt levels have been a key concern for the IMF, and the organisation has called for measures to contain the country's debt burden and reduce the risk of debt distress.

4. Inadequate infrastructure: Ghana's infrastructure is inadequate to support economic growth and the IMF has called for investments in the energy, transport, and water sectors

5. Political instability: Political instability in Ghana can impede the implementation of economic reforms and discourage investment.

6. Limited private sector development: The IMF has called for measures to improve the business environment, including simplifying regulations and reducing bureaucracy, to encourage private sector development.

Ghana's debt burden is high, with internal debt at GH₵113.9 billion ($20.7 billion) and external debt at GH₵95.8 billion ($17.6 billion), of which a significant portion is from bonds issued on the international market.

The country's internal debt is composed of debt owed to domestic creditors such as banks, while external debt is debt owed to foreign creditors such as other governments, international organizations, and private sector investors.

According to the Bank of Ghana, as of December 2020, the country's total internal debt stood at GH₵113.9 billion ($20.7 billion) while the external debt stood at GH₵95.8 billion ($17.6 billion). The country's total debt stock is therefore GH₵209.7 billion ($38.3 billion).

One of the main sources of Ghana's external debt is bonds issued on the international market. In recent years, Ghana has been issuing Eurobonds to raise funds from international investors.

As of December 2020, Ghana's outstanding Eurobonds stood at $8.4 billion, which is about 47% of its total external debt. With these debts in perspective mean more needs to be done to ensure a sustainable debt level and a stable economy.

In Summary, Ghana can overcome the current economic issues surrounding the Extended Credit Facility by taking steps such as strengthening public financial management, increasing revenue mobilisation, reducing public debt, investing in infrastructure, promoting political stability,

developing the private sector and implementing structural reforms to increase productivity and competitiveness, improve governance of state-owned enterprises and public utilities.