Ghana’s domestic debt increases by GHc24bn to GHc333.8bn
Ghana’s domestic debt rose modestly from GH¢309.8 billion to GH¢333.8 billion in December 2025, even as the country recorded a decline in its overall debt-to-GDP ratio.
The increase in domestic borrowing reflects government’s strategy of building liquidity buffers to meet financial obligations, according to the March 2026 Monetary Policy Report by the Bank of Ghana.
The report noted that the rise in domestic debt was largely driven by short-term instruments issued on the local market.
On the external front, foreign currency-denominated debt increased due to new loan disbursements. However, when measured in local currency terms, external debt declined significantly from GH¢416.8 billion in December 2024 to GH¢307.2 billion in December 2025.
This reduction was attributed mainly to the strong performance of the cedi and the repayment of both Eurobonds and multilateral loans, resulting in a decline of about GH¢125.2 billion, equivalent to 9 per cent of estimated GDP.
Overall, the provisional stock of central government and guaranteed debt stood at GH¢640.99 billion (45.3 per cent of GDP) at the end of December 2025, down from GH¢726.7 billion (61.8 per cent of GDP) a year earlier.
Of the total public debt, external debt accounted for GH¢307.2 billion (21.7 per cent of GDP), while domestic debt stood at GH¢333.8 billion (23.6 per cent of GDP).
The Bank of Ghana said the decline in the debt-to-GDP ratio reflects improvements in both external and domestic debt sustainability indicators.
It added that the reduction was driven by currency appreciation, higher debt amortisation, prudent borrowing practices, lower borrowing costs, and stronger fiscal discipline, which contributed to a higher primary surplus position.
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