Ghana’s debt-to-GDP ratio speculated tip-off to 65% by 2023, incorporating Sinohydro Bauxite barter deal
Ghana’s debt will rise predominantly due to an annual assumption of 2% of GDP in the form of contingent liabilities.
The disbursals under the $2 billion financing deal with Sinohydro, an infrastructure financing deal that has been an ancillary by country’s yet-to-be-mined and refined bauxite resources.
This is at a pre-assumed stage that the annual execution rate of about $100 – $200 million in the funding requirements and the debt ratio.
The Federal Government is examining by issuing additional collateralized debt to support investment in bauxite refining in part to absorb surplus energy.
As an outcome, the debt burden has risen by nearly 10% points of GDP since 2017, in part as a consequence of the financial sector bailout in 2018-19 and the measures taken to clear legacy power utility debts estimated at 4.5% and 2% of GDP, respectively.
At the end of 2019, the estimated GDP of 64% may rise further over the next term.
Sr. Principal Research Leader of CSIRO appointed as GM, Alcore: Australian Bauxite Ltd
Next articleAustralian Bauxite Ltd published Quarterly Report & Activity statement for three months to 31st December’19
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