- According to international rating firm Fitch Solutions, Ghana’s debt is expected to decrease by 87% of GDP by the end of 2023, as opposed to 89% of GDP in 2022.
- Fitch attributed the decrease to the Bank of Ghana’s 50% haircut on its non-marketable loan holdings, which amounted to a debt reduction of 4.2% of the projected GDP for 2023.
- The rating agency stated that it anticipated that the primary deficit and the 33% annual cedi devaluation by the end of 2022 would be somewhat mitigated by the reduction in governmental indebtedness.
- The rating agency based its projections on the debt reduction for 2024 and 2025 on a proposed 30% haircut on external debt considered for restructuring, year-on-year cedi depreciation of 20% in 2024 and 9% in 2025, and a GDP deflator of 21% and 10% respectively.
- The rating agency said public debt would fall by 78% by 2025; however, it emphasised that there was a high degree of doubt surrounding the conclusiveness of external debt restructuring due to constraints.
- According to international rating firm Fitch Solutions, Ghana’s debt is expected to decrease by 87% of GDP by the end of 2023, as opposed to 89% of GDP in 2022.
- Fitch attributed the decrease to the Bank of Ghana’s 50% haircut on its non-marketable loan holdings, which amounted to a debt reduction of 4.2% of the projected GDP for 2023.
- The rating agency stated that it anticipated that the primary deficit and the 33% annual cedi devaluation by the end of 2022 would be somewhat mitigated by the reduction in governmental indebtedness.
- The rating agency based its projections on the debt reduction for 2024 and 2025 on a proposed 30% haircut on external debt considered for restructuring, year-on-year cedi depreciation of 20% in 2024 and 9% in 2025, and a GDP deflator of 21% and 10% respectively.
- The rating agency said public debt would fall by 78% by 2025; however, it emphasised that there was a high degree of doubt surrounding the conclusiveness of external debt restructuring due to constraints.