–BY Daniel Bampoe
Amid renewed public scrutiny over Ghana’s rising debt burden, the Governor of the Bank of Ghana, Dr. Johnson Asiama, tactfully distanced the central bank from direct responsibility for explaining the recent surge in the country’s public debt stock.
During a press briefing held on May 23, 2025, following the 124th Monetary Policy Committee (MPC) meetings, journalists pressed the Governor for clarity on what had caused the noticeable jump in the public debt between December 2024 and March 2025.
The question—seemingly straightforward—touched a nerve that has become increasingly sensitive within Ghana’s economic discourse: What is driving the debt up, and who is accountable?
Dr. Asiama responded with characteristic caution.
“Those figures are compiled by the fiscal authorities—specifically, the Ministry of Finance,” he said, avoiding direct attribution of blame or even speculation.
He offered to provide more details in a one-on-one setting but declined to elaborate publicly during the session.
This deflection has only deepened speculation over what factors may be fueling Ghana’s ballooning debt.
Analysts point to several possible culprits: depreciation of the cedi in prior months, increased reliance on short-term domestic borrowing—particularly treasury bills—and the residual effects of the Domestic Debt Exchange Programme (DDEP) introduced to restructure local debt portfolios in 2023 and 2024.
Although the cedi has appreciated markedly in recent months, reducing the local currency value of external debt in theory, the Bank of Ghana has not clarified whether any exchange rate gains have translated into actual debt relief.
Meanwhile, persistent shortfalls in revenue collection, ongoing subsidy expenditures, and the costs of recapitalizing a stressed banking sector may be silently driving up the fiscal deficit.
Furthermore, despite recent inflows that have boosted international reserves beyond USD $10 billion, concerns remain over how much of this buffer is encumbered or earmarked for near-term external obligations—including the partial resumption of external debt servicing and pending repayments under bilateral and multilateral loan arrangements.
What’s particularly troubling for many observers is the apparent lack of coordination or transparency between fiscal and monetary authorities.
While the Bank of Ghana remains focused on inflation targeting, currency stability, and reserve accumulation, the Finance Ministry is left to carry the weight of explaining a rising debt trajectory that is beginning to draw political fire.
The absence of concrete figures or a publicly detailed debt sustainability analysis at the MPC briefing has reignited calls for greater fiscal accountability.
Civil society groups and opposition lawmakers have increasingly demanded that both the Finance Ministry and the central bank release synchronized data sets that track borrowing, debt servicing, and corresponding economic returns.
As Ghana eyes another IMF disbursement—expected in early July to the tune of US$360 million—the government is likely to face more probing questions from both the Fund and Ghanaians at large.
Without a clearer picture of the debt’s composition and its growth drivers, confidence in the country’s medium-term fiscal path could waver.
For now, the central bank insists it remains focused on monetary policy and financial sector stability. But the public debt debate is unlikely to go away—and the expectation for clarity continues to build.
Whether behind closed doors or on the record, the Bank of Ghana may soon have to play a more visible role in shaping that conversation.
