Government plans to issue GH¢17.4 billion, the equivalent of $4.1 billion worth of domestic instruments for government finances and debt restructuring in the first three months of this year
An amount of GH¢15.5billion (GH¢15,504.43million) would be used to rollover forecast maturities with the remaining amount of GH¢1.8billion (GH¢1,895.57 million) being fresh issuance to meet government’s financing requirements and build buffers for liability management.
The break down and issue dates are as follows: January17- GH¢6.7billion, February 17 - GH¢5.3 billion and March 17 - GH¢5.4billion.
The papers will include a fresh five-year cedi bond this month worth 600 million cedis to support the budget, and a three-year 700 million cedi bond to be issued in February, the bank said in a statement.
The two bonds will be issued through book-building transactions, and settlement will be on the last Monday of each month. In all, about 15.5 billion cedis will be used to roll over expected maturities.
A statement issued by the Bank of Ghana (BoG) and signed by its secretary Mrs Caroline Otoo said should the auctions in the medium-term instruments be successful and acceptable at prevailing interest rates, government may consider accepting a reasonable amount above the target to build buffers which would be used to reduce borrowing at the short end of the yield curve.
It said the 91-day and 182-day will 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.
It added that the 2-Year Note would 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 done per the calendar through the book-building method at the Ghana Stock Exchange (GSE) and settlement will be on the last Monday of each month.
The statement explained that the medium-term instruments may be reopened to create liquidity and benchmark securities adding “these instruments may be reopened to create liquidity in the instrument.
Source: The Finder
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Massa ; find time to study the use of borrowing as an economic management instrument in an economy such as Ghana and STOP your NDC ignorance ; why are NDC people so ***barred word*** about how the economy works besides read the article carefully and you shall find that this is domestic gearing not an external borrowing ; the NPP government just took over power and therefore are obliged to pay the interest on the huge borrowing by Jon Mahama and the NDC government who stole the borroed cash ; if we do not pay our debts Ghana will default om its debts ; it is not the government that is borrowing from the domestic market but the BOG because this NPP government are still been briefed on state of the countrys finances but our debts have to be paid in the interim ; instead of BOG going to borrow on the foerign bond market it has decided wisely to borrow on the domestic market because the external rate is around 10%-12% besides borrowing from outside gave Jon Mahama the oppportunity to divert some of funds into his private pocket;this parliament just started and will not aprove any external debt for now ; you do not need DR Bawumia to explain this to you because Dr Bawumia warned the NDC about the consequence of borrowing externally but the government ignored his advice ; today we have structural projects but the question is at what cost to the Ghanaian tax payer ; what has a nice hospital built at Dodowa got to do with a whole cluster of villages at PAGA ; what has an over inflated cost of an inter change at Circle or Kasoa got to do with somebady in the Volta region ; A waste of resources and stilling of moneies .
I remember this phrase "Ghana does not need to borrow, the money is here. The borrowing is too much and when we win the election we will not borrow. We will not have Woyome, SADA, SUBA....so we will use those monies to run the country and will not need to borrow". NPP will be exposed for their lies, we are well awake. You think all Ghanaians are ***barred word***???? $4.1 billion????? Never in the history of Ghana. I thought NPP said its only incompetent government that borrows since any boby at all can borrow to do development and that they have the men (what ever that means...as if they are not Ghanaians we all know) who will manage the economy without borrowing..Bawumia were are???? Won't you speak against the intended borrowing???
@ kid Massa this bond has no external effect on the nation so what is the beef about this?
but npp and nana addo said they won't go in for loans? npp is a mistake to ghana as a nation.
Brilliant ideas at work. Ghana will prosper again and everyone will be happy. I pray NPP stay in power for 50years to put Ghana where it belongs. God is the reason and still the battle is the Lords, Amen.