Ghana’s energy sector arrears stood at some $ 1.6 billion, about 2.3 percent of Gross Domestic Product at the end of 2022.
According to the International Monetary Fund, the non-energy sector arrears at about GH¢35 billion (5.8% of Gross Domestic Product).
In its 2023 Article IV Consultation, the Bretton Wood institution said the government continued to accumulate payables during the first half of 2023, hence breaching the related programme indicative target (IT).
“The government had accumulated significant arrears in recent years. The stock-taking exercise conducted by the authorities (structural benchmark) assessed an overall stock of arrears at end-2022 broadly consistent with initial programme assumptions”
It pointed out that non-energy sector payables declined, but energy sector payables increased due to low recoveries in the sector, tight financing conditions, and pending negotiations with Independent Power Producers (IPPs).
It added that the energy sector payables are only monitored under the Indicative Target. Nonetheless, adjusting the primary balance to account for the accumulation of energy sector payables during H1 [first-half] of 2023 would still entail outperformance of the end-June primary balance target.
Latest Stories
-
I was suspended in SHS after making a dance video with my uniform – Lisa Quama
56 mins -
Unemployed man sentenced to 5 years for causing harm
58 mins -
GTA gears up for National Tourism Awards 2024
59 mins -
Police foil robbery attempt, arrest four suspects
1 hour -
Prof. Gyampo criticises vacating of MP seats due to cross-carpeting
4 hours -
A critical examination of Speaker Alban Bagbin’s ruling on potential breaches of Article 97(1)(G) and (H)
5 hours -
Trump calls 6 January ‘day of love’ when asked about Capitol riot
5 hours -
UTAG calls for immediate prosecution of persons arrested for engaging in galamsey
5 hours -
Prof Ransford Gyampo: And Speaker Bagbin declared 4 seats vacant…
6 hours -
Secret Service has ‘deep flaws’ and must overhaul leadership, report says
6 hours -
Kenya’s deputy president sacked while in hospital
6 hours -
One Direction ‘devastated’ at Liam Payne’s death
6 hours -
Ghana’s debt to ease to 70% of GDP in 2024; another debt default unlikely – Fitch
6 hours -
Meta fires staff for buying toothpaste, not lunch
6 hours -
U-20 AFCON 2025Q: Afriyie’s brace earns Ghana draw against Benin
6 hours