5.0
Debt
Management
A
major
problem
facing
the
government
of
Ghana
is
how
to
reduce
the
level
of
public
debt.
There
has
been
an
increase
in
public
debt
from
about
US$
5,310.55
million
in
2006
to
US$
7,409.72
in
2007
and
further
to
about
US$
7,667.58
in
June
2008.
The
debt-‐to-‐GDP
ratio
however
increased
from
41.42
percent
in
2006
to
about
50.90
percent
at
the
end
of
2007
but
reduced
to
46.11
percent
in
June
2008.
MoFEP
in
2008
plans
to
improve
revenue
mobilization
by
mobilizing
an
amount
of
US$2.00
billion
in
the
form
of
loans
and
grants
from
development
partners
(DPs).
The
Ministry
is
also
in
the
process
of
developing
a
draft
Aid
Policy
for
further
consultations.
To
enhance
public
debt
management
in
an
era
of
commercial
bonds,
the
Ministry
is
undertaking
the
following
activities:
•
Maintain
a
healthy
mix
of
both
concessional
(minimum
grant
element
of
35
per
cent)
and
non
concessional
loan
financing.
•
Step-‐up
efforts
at
mobilizing
more
programme
type
aid
and
seeking
more
grants
to
finance
poverty
reduction
and
growth
enhancing
activities.
•
Maintain
up-‐to-‐date
information
on
contingent
liabilities,
in
the
quest
to
ensure
comprehensiveness
of
the
public
debt
and
collaborate
with
BOG
to
improve
data
on
non
guaranteed
private
sector
debt.
•
Publish
the
updated
compendium
of
donor
policies
to
serve
as
a
reference
point
for
information
regarding
policies
of
DPs.
•
Enhance
better
capacity
in
middle
office
functions
to
identify
and
manage
the
trade-‐offs
between
expected
costs
and
risks
in
the
government
debt
portfolio.
•
Publish
a
medium
term
debt
strategy
which
will
be
updated
annually.
•
Facilitate
the
amendment
of
the
loans
Act
of
1970
by
Parliament
to
make
it
more
relevant
to
current
circumstances
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