The Annual Public Debt Report for the 2018 Financial Year Submitted to Parliament on Friday, 29th March, 2019 by Ken Ofori-Atta Minister for Finance In Fulfilment of the Requirements of Section 72 of the Public Financial Management Act, 2016 (Act 921) Annual Public Debt Report for the 2018 Financial Year The 2018 Annual Public Debt Report To purchase copies of the Report, kindly contact the Public Relations Office of the Ministry Ministry of Finance Public Relations Office New Building, Ground Floor, Room 001 and 003 P. O. Box MB 40 Accra – Ghana The 2018 Annual Public Debt Report is also available on the internet at: www.mofep.gov.gh 2 The 2018 Annual Public Debt Report Acronyms and Abbreviations ABED - Arab Bank for Economic Development ABN AMRO - ABN Amro Bank N.V. ABSA - ABSA Bank Ltd. ACRPL - Accra Compost & Recycling Plant Limited ADB - Agricultural Development Bank ADF - African Development Fund ATM - Average Time to Maturity ATR - Average Time to Re-fixing BAAG - Bank Austria AG BADB - Banco do Brasil BBNV - Belfius Bank NV/SA BBP - Barclays Bank Plc BELG - Government of Belgium BHI - Bank Hapoalim BMH - Mees Pierson NV BNDS - Banco Nacionale de Desenvolvimento Economico E Sociale BNP - Banque National de Paris BoG - Bank of Ghana BoP - Balance of Payments BOST - Bulk Oil Storage and Transportation Company Ltd BPA - Bui Power Authority CAL - CAL Bank Limited CBG - Consolidated Bank Ghana Limited CCAB - Credit Agricole CCMA - Cape Coast Metropolitan Assembly CCRB - Coöperatieve Central Raifffeisen-Bank (RaboBank) CDB - China Development Bank Corporation CITI - Citi Group Bank CMBK - Commerzbank CNY - Chinese Renminbi CSD - Central Securities Depository (GH) Limited CSI - Credit Suisse International CWE - China International Water & Electric Corporation DBI - Deutsche Bank, Italy DBSA - Deutsche Bank S.A. (Brazil) DESA - Deutsche Bank New York DOD - Disbursed Outstanding Debt DSA - Debt Sustainability Analysis DSRA - Debt Service Reserve Accounts EBID - ECOWAS Bank for International Development ECA - Export Credit Agency ECBT - Export Credit Bank of Turkey 3 The 2018 Annual Public Debt Report ECF - Extended Credit Facility ECG - Electricity Company of Ghana ECOWAS - Economic Community of West African States EDI - Euroget de Invest S.A. EIB - European Investment Bank EM - Emerging Markets EMEA - Europe, Middle East and Africa EUR - Euro EXIC - Export-Import Bank of China EXIM - Export-Import Bank of India EXUS - Export-Import Bank of U.S.A. FPSO - Floating Production Storage and Offloading FRG - Government of the Federal Republic of Germany FRGN - Government of France FX - Foreign Currency GACL - Ghana Airports Company Limited GBP - British Pound Sterling GCB - GCB Bank Limited GDN - Global Depository Note GDP - Gross Domestic Product GH¢ - Ghana Cedi GHS - Ghana Health Service GIFMIS - Ghana Integrated Financial Management Information System GFIM - Ghana Fixed Income Market GoG - Government of Ghana GPHA - Ghana Ports and Harbours Authority GPRC - Government of the People's Rep. of China GRIDCo - Ghana Grid Company Limited GRK - Government of the Republic of Korea GSS - Ghana Statistical Service GWCL - Ghana Water Company Limited HIPC - Heavily Indebted Poor Countries HSBC - HSBC Bank Plc ICBC - Industrial & Commercial Bank of China ICM - International Capital Market IDA - International Development Association IFAD - International Fund for Agric. Development IMF - International Monetary Fund INDG - Government of India ING - Internationale Nederlanden Bank IPO - Initial Public Offering ITG - Government of Italy JBRs - Joint Book Runners JICA - Japan International Cooperation Agency JPY - Japanese Yen 4 The 2018 Annual Public Debt Report KBCB - KBC Bank n.v KFED - Kuwait Fund for Arab Economic Development KMA - Kumasi Metropolitan Assembly LIBOR - London Interbank Offer Rate MDAs - Ministries, Departments and Agencies MMDAs - Metropolitan, Municipal and District Assemblies MMTL - Metro Mass Transit Limited MoF - Ministry of Finance MoH - Ministry of Health MoT - Ministry of Transport MPR - Monetary Policy Rate MTDS - Medium Term Debt Management Strategy NCBL - Nedcor Bank Limited NDF - Net Domestic Financing NIC - National Insurance Commission NITA - National Information Technology Agency NORB - Nordbanken International Division NPLs - Non-Performing Loans NPRA - National Pensions Regulatory Authority NTF - Nigeria Trust Fund o/w - of which ODA - Official Development Assistance OFID - OPEC Fund for International Development OPEC - Organization of the Petroleum Exporting Countries PDs - Primary Dealers PFM - Public Financial Management PGIS - Power Generation & Infrastructure Support Account PPP - Public Private Partnership PTIC - Poly Technologies Inc. China RZB - Raiffeisen ZentralBank Osterreich AG S&P - Standard & Poor's SARG - Government of Saudi Arabia SCB - Standard Chartered Bank. SDR - Special Drawing Rights SEC - Securities Exchange Commission SOE - State-Owned Enterprise SOGE - Societe Generale SPAG - Government of Spain SPV - Special-Purpose Vehicle SSNIT - Social Security and National Insurance Trust STC - State Transport Corporation T-Bill - Treasury Bill TDRL - TOR Debt Recovery Levy TDMD - Treasury and Debt Management Division TOR - Tema Oil Refinery 5 The 2018 Annual Public Debt Report UMaT - University of Mines and Technology UMB - Universal Merchant Bank UNCM - Unicredit Bank AG Munich UNCR - Unicredit Bank of Austria USD - United States Dollar VRA - Volta River Authority VTB - VTB Bank WEO - World Economic Outlook 6 The 2018 Annual Public Debt Report Table of Contents Acronyms and Abbreviations ............................................................................................... 3 Table of Contents ................................................................................................................ 7 List of Tables ....................................................................................................................... 9 List of Figures .................................................................................................................... 10 List of Appendices ............................................................................................................. 11 Foreword ............................................................................................................................ 12 Executive Summary ........................................................................................................... 14 Section One: Introduction .................................................................................................. 16 Section Two: Macroeconomic Developments for 2018 ...................................................... 18 Global Developments ..................................................................................................... 18 Domestic Developments ................................................................................................. 18 Section Three: 2018 Medium-Term Debt Management Strategy ....................................... 23 Section Four: Government Borrowing and Financing Operations ...................................... 26 Section Five: Gross Public Debt ........................................................................................ 28 Public Debt Dynamics .................................................................................................... 29 External Debt Stock ........................................................................................................ 30 Domestic Debt Stock ...................................................................................................... 37 Section Six: Liability Management Operations ................................................................... 46 Section Seven: Contingent Liabilities ................................................................................. 47 Recoveries On On-Lent Facilities ................................................................................... 47 Defunct Loans On Government Books ........................................................................... 47 Guarantees ..................................................................................................................... 48 Public Private Partnerships............................................................................................. 48 Credit Risk Assessment ................................................................................................. 49 Financial Sector Bailout .................................................................................................. 49 Section Eight: Other Finance Arrangements ...................................................................... 50 Energy Sector Bond ....................................................................................................... 50 Section Nine: 2019-2022 MTDS ........................................................................................ 52 Section Ten: Public Debt Management Reforms and Initiatives ........................................ 53 7 The 2018 Annual Public Debt Report Section Eleven: Conclusion ............................................................................................... 56 Glossary ............................................................................................................................. 58 Appendices ........................................................................................................................ 62 8 The