December 8, 2021

ANOTHER 2 BILLION LOAN COMING?

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GH¢2.9bn in fresh funds to be borrowed between June and August 2021 by govt

Ken Ofori-Atta, Finance Ministe.

• Ghana’s public debt stock rose by GH¢13billion to hit GH¢304.6 billion in March 2021, the Bank of Ghana (BoG) Summary of Economic and Financial Data disclosed

• The $3billion Eurobond raised by the country in March this year, accounted for this jump in the debt.

• The new funds are expected to finance government projects outlined in the 2021 Budget and grow the economy in the post-COVID-19 era

The Issuance Calendar released by the Finance Ministry has revealed that the government of Ghana is set to borrow a little over Gh¢2 billion fresh funds between June and August 2021 to support the economy.

According to the calendar, the government plans to issue about ¢21.96 billion, out of which ¢19.86 billion will be used to pay a maturing debt or rollover maturities.

The new funds are expected to finance government projects outlined in the 2021 Budget and grow the economy in the post-COVID-19 era.

The calendar shows that the government will issue GH¢11.2 billion via the 91-day Treasury bills, whilst GH¢1.71 billion will be mobilized through the issuance of the 182-day T-bills.

According to a Myjoyonline report sighted by GhanaWeb, the government is expected to borrow as much as GH¢8.13 billion in the month of July 2021, the highest among the three months.

However, GH¢1.8 billion is expected to be raised from the 3-year, 6-year and 7-year bonds respectively, while GH¢1 billion is expected to be raised through the issuance of a 10-year bond in the month of August 2021.

GH¢1.45 billion is expected to be raised via a one-year bill, GH¢1.2 billion will be mobilized through the issuance of the two-year bond.

Meanwhile, the government was expected to have borrowed GH¢4.12 billion in fresh funds in the second quarter of this year which will end this month.

Chunk of the funds to be mobilized will come from the 91-day Treasury bills, a clear intention of the government’s quest to reduce foreign borrowing, but could phase out the private sector from access to funds on the domestic market.


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