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Gov’t Borrows GH¢14.8bn In Last Quarter
 
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10-Oct-2017  
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Ken Ofori Atta
 
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Government has indicated that it intends to borrow a total of GHȼ14,800 million in the last quarter of this year from investors (October to December).

Out of the amount, GH¢12,778.17 million would be used to settle rollover maturities while the remaining amount of GH¢2,021.83 million, being fresh issuance, would be used to meet its financing requirements.

The Ministry of Finance, which disclosed this in a statement issued recently, said GH¢6,100 million would be borrowed via the issuance of 91-day Treasury bills for the period, while GH¢2,200 million would also be mobilized through 182-day Treasury bills.

From the 1-year note and 2-year note, it said a total of GH¢1,200 million and GH¢900 million respectively shall be mobilized from investors while also for the 3-year and 5-year bonds, a total of GH¢1,000 million and GH¢900 million shall be borrowed in that order.

No 7-year bonds would be issued for the period.

GH¢1,500 million would be issued in 10-year bonds while GH¢1,000 million would be issued in 15-year bonds.

Public debt

At its latest Monetary Policy Committee (MPC) meeting in Accra, the Central Bank announced that Ghana’s total public debt stood at GH¢138.6 billion (68.6 percent of GDP) at the end of June 2017 from GH¢137.3 billion (68.0 percent of GDP) in May 2017.

It said that domestic debt remained unchanged at GH¢63.9 billion while external debt was GH¢74.6 billion.

Dr Ernest Addison, the Governor of the Bank of Ghana (BoG), who addressed journalists in Accra after the meeting, said the marginal increase in the debt stock in cedi terms was due to exchange rate effects.

The Central Bank also added that Ghana’s financial sector was broadly liquid and solvent even though non-performing loans and concentration risks remained high.

Details

The 91-day and 182-day would be issued weekly while the 1-Year Note would be issued bi-weekly through the primary auction, with settlement occurring on first and third Mondays of each month.

In the case of the 2-Year Note, it will be issued monthly through the primary auction, with settlement occurring on second Mondays of each month while the 3- and 5-Year Bonds will be issued per the calendar through the book-building method and settlement on the last Mondays of each month.

However, it said “the 3-Year target in October 2017 will be a domestic Dollar Bond issuance; while the 5-Year target in October 2017 would be issued through re-opening of the existing 5-Year Bond (coupon of 18.25 percent) which will mature by 25th July, 2022.

“The 5-Year target in November 2017 will be issued as an inflation linked bond (TPFA); the 10 and 15-Year Fixed Bond in November 2017 will be issued to convert the existing 91-Day Treasury Bills investment (TPFA). These two instruments would be opened to the investor public to improve liquidity,” the statement said.
 
 
 
Source: Daily Guide
 
 

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