Government borrows GH ¢ 22,346.40 million for Q1

The government has announced its intention to issue a gross amount of GH ¢ 22,346.40 million of financial instruments, of which GH ¢ 19,732.64 million will be used for deferral of maturities while GH ¢ 2,613.76 million ¢ remaining are new issues to meet the government’s financing needs.

Some of the instruments he will use to achieve this include 91-day T-bills, 182-day T-bills, 364-day T-bills, three-year bonds, five-year bonds, bonds. at six years, bonds at seven years. and a 20-year bond.

A recent government issuance schedule released online by the Ministry of Finance for the first quarter of this year, which detailed this, indicated that the government would float GH ¢ 10.4 billion in 91-day treasury bills, this which constitutes the bulk of financial instruments. This will be followed by the two-year bond through which GH ¢ 4.13 billion will be sold.

182-day T-bills, three-year bonds and 364-day T-bills will follow issuance of GH ¢ 1.7 billion each and GH ¢ 1.405 billion, respectively.

The five-year, six-year, seven-year and 20-year bond issuance is expected to bring in GH ¢ 1.4 billion, GH ¢ 800 million, GH ¢ 700 million and GH ¢ 111.4 million in that order. .

91-day and 182-day T-bills are billed to be issued weekly, while 364-day T-bills will be issued every two weeks.

The finance ministry said the two- to seven-year bonds would be issued on the book-building method, as the 20-year bond would be issued through a pre-offer and would reopen at investor demand and market conditions.

In addition, the ministry said the government will update the issuance schedule on an ongoing monthly basis, to reflect a full quarterly funding schedule.

According to the summary of financial and economic data for November 2020 released by the central bank, Ghana’s outstanding public debt stood at ¢ 273.8 billion, or 71% of gross domestic product in September 2020, or 48 billions of dollars.

It showed that, from July to September 2020, the government incurred $ 10.7 billion more in debt on Ghana’s public debt stock.

— Daily guide