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The Institute of Economic Affairs (IEA) has expressed worry about the aggressive borrowing by the government on the domestic debt market, especially from the short end of the market where investor appetite is high.

According to its July-August 2024 Economic Outlook, it said the domestic component of the debt has increased by as much as GH¢32.7 billion or 12.7%, from GH¢257.3 billion to GH¢290.0 billion in the year to June 2024, whereas the external component has increased only marginally by US$0.9 billion or 0.3% from US$30.1 billion to US$31.0 billion.

The IEA pointed out that since the government currently lacks access to the international bond market, it is understandable that it is only borrowing from the domestic market.

Nonetheless, it advised that the borrowing is closely monitored and controlled, so that it does not get out of hand and land the country into another major debt crisis.

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