19.5% of domestic debt held by non-resident investors – BoG

On October 29, 2021, 9:53 AM

Non-resident investors are said to hold about 19.5 percent (GH₵33.8 billion) of the country’s total domestic debt.

The 19.5% domestic debt held by non-resident investors is as a result of their investments into government’s short-term-dated debt instruments such as the 91,182 and 364 days treasury bills.

According to data contained in the Central Bank’s Quarterly Bulletin for the second quarter of 2021, the 19.5% hold of domestic debt by non-resident investors marks a decrease of 0.8% when compared to the 20.3% holdings of domestic debt in Q2: 2020.

Meanwhile, the Bank of Ghana’s holdings of domestic debt at the end of Q2: 2021 was GH₵34,671.7 million, representing 20.0% of the total domestic debt holdings.

The Deposit Money Banks (DMBs) held GH₵52,619.1 million (30.3%t). SSNIT held GH₵574.1 million (0.3%), Insurance companies – GH₵949.1 million (0.5%, whilst “Other holders” made up of Rural Banks, Firms and Institutions and Individuals held GH₵51,198.8 million (29.5%).

Comparative holdings at the end of the second quarter of 2020 were Bank of Ghana (18.7%), Deposit Money Banks (31%), SSNIT (0.5%), Insurance Companies (0.6%), while other holders had 28.9% respectively.

The stock of domestic debt at the end of Q2 2021, the BoG asserts, stood at GH₵173,835.2 million, compared to GH₵121,966.8 million recorded in Q2 2020, adding that the growth in the domestic debt stock reflected increases in the short, medium, and long-term bonds and stocks by GH₵6,426.8 million, GH₵35,438.0 million and GH₵10,003.6 million, respectively.

“The growth in short-term debt, reflected increases of GH₵2,199.17 million, GH¢1,671.1 million, and GH¢2,556.5 million in the 91-day, 182-day, and 364-day Treasury bills, respectively.

The increase in medium-term securities at the end of Q2:2021 was on account of increases in 2-year and 3-year fixed treasury notes as well as 5-year, 6-year, 7-year and 10-year GOG bonds, while the 3-year SSNIT stock declined by GH₵48.7 million.

“The increase in long-term debt was due to a significant rise of GH₵7,811.6 million in long-term Government stocks. There were also increases of GH₵921.8 million and GH₵1,384.6 million in the 15 and 20-year GOG bonds respectively,” said the BoG.

On the other hand, the provisional stock of outstanding public and publicly guaranteed external debt at end-June 2021 was $28,072.15 million, up from the stock position of $24,598.81 million at end-March 2021.

The external debt stock was $3,963.08 million (16.4%) above the level of $24,109.07 million recorded at end-June 2020. This rise in the stock was largely due to the $3.00 billion Eurobonds floated on the International Capital Market in April 2021.

The external debt stock at the end of the second quarter of 2021 represented 37.3% of GDP, compared with 35.65% recorded for the same period in 2020.

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Story By ghanaiantimes.com.gh