Ghana’s domestic debt recorded a modest increase, rising from GH¢309.8 billion to GH¢333.8 billion in December 2025, even as the domestic debt-to-Gross Domestic Product (GDP) ratio declined.
The increase reflects government’s continued borrowing strategy aimed at building buffers to meet its financial obligations.
According to the March 2026 Monetary Policy Report by the Bank of Ghana, the rise in domestic debt was mainly driven by short-term borrowing instruments.
The report also noted movements in external debt, which increased in foreign currency terms due to new loan disbursements. However, when measured in local currency, external debt fell from GH¢416.8 billion in December 2024 to GH¢307.2 billion in December 2025.
This decline was largely attributed to the strong performance of the cedi and repayments on Eurobonds and multilateral loans, reducing the external debt stock in local currency terms by GH¢125.2 billion—equivalent to about 9% of estimated GDP.
Overall, the provisional debt stock for central government and guaranteed obligations stood at GH¢640.99 billion (45.3% of GDP) at the end of December 2025, down from GH¢726.7 billion (61.8% of GDP) recorded at the end of December 2024.
Of the total public debt, external debt accounted for GH¢307.2 billion (21.7% of GDP), while domestic debt stood at GH¢333.8 billion (23.6% of GDP).
The Bank of Ghana noted that the sharp reduction in the debt-to-GDP ratio reflects improvements in both external and domestic debt positions.
It further attributed the decline to the appreciation of the local currency, higher amortisation payments, prudent borrowing practices, lower borrowing costs, and stronger fiscal discipline that resulted in a higher primary surplus.