Skip to main content

It will be suicidal to touch T-bills under debt exchange programme – Ofori-Atta


Finance Minister, Ken Ofori-Atta has assured that government will not touch Treasury Bills (T-bills) under the Domestic Debt Exchange Programme. 

According to him, it will be suicidal for government’s own finances and fundraising programmes in the future to touch T-bills as part of the programme.

Mr. Ofori-Atta noted that government has conducted a Debt Sustainability Analysis which does not include T-bills.

We can’t afford to touch it. Let me assure you, Treasury bills will forever remain sacrosanct. Treasury bills are exempted completely. We have done the sustainability analysis. We are not including treasury bills. That is how government funds its operations”, he reaffirmed.

He disclosed this on PM Express Business Edition which will be aired on Joy News at 9pm January 19, 2023 with host, George Wiafe.

Treasury Bills Support

Government has heavily relied on T-bills to fund its operations after it announced in December 2022, that it will embark on Domestic Debt Exchange Programme.

The programme, which is a major requirement for an International Monetary Policy deal requires that government present feasible roadmap aimed at reducing the country’s debt stock.

Industry concerns on T-bills

Government in a term sheet document published on the Finance Ministry’s website on the “Eligible Bonds Under the Programme”  noted that Subject to the invitation to the exchange  (Collectively Eligible Bonds,  Treasury Bills) issued by the Republic and Certain Non Market securities issued by the  Republic  are not subject  this invitation  to Exchange . Such Treasury Bills and Non- Marketable Securities may however be the Subject of other Exchanges and Purchases by the Government of Ghana from time to time.

This fueled speculations that that government that will soon touch T-Bills. 

Ghana’s ballooning debt

The 2023 Budget showed that Ghana’s total public debt stock ending September 2022 reached ȼ467.4 billion, representing 75.9% of GDP.

This was up from ȼ352.1 billion at the end of December 2021.

The increase in the debt stock is mainly attributable to exogenous factors which resulted in rising interest cost and depreciation of the local currency.

The development has led to some arguing that current challenges that we are facing is due to the excessive borrowing by the government.

But the Finance Minister, Ken Ofori Atta, insists, these borrowed funds were advanced towards some infrastructure projects .

Labels:

Comments

Post a Comment

Popular posts from this blog

MTN Ghana & MTN MoMo CEOs win laurels at Ghana CEO Awards

  The Chief Executive Officer of MTN Ghana, Selorm Adadevoh ,   has been adjudged  CEO of the Year  –  Telecom  at the  2 nd  edition of the  Ghana CEO  Vision  and  Awards   held  in Accra. At the same event, the CEO of Mobile Money Limited (MTN MoMo), Shaibu Haruna was also adjudged CEO of the Year – FinTech Service Provider. Selorm  Adadevoh’s award  is in recognition  of  his   achievements   in the areas of   sustainability, leadership excellence, innovation and others  in the telecoms space  which  has contributed to  job creation to support the  growth of Ghana’s economy. Patrick Afari (r), General Manager, Supply Chain Management and General Services receiving CEO of the Year – Telecom Award on behalf of Selorm Adadevoh Receiving the award on behalf of Selorm, Patrick Afari, General Manager, Supply Chain Management and General Services ,  expressed appreciation to the organizers for the award. He  noted that  th e  award will go a long way to inspire MTN to do more for Ghanaian
Post a Comment
Read more

EB-ACCION DISBURSES US$15 MILLION

By Fred SARPONG Ecobank-Accion (EB-Accion), a partnership between Ecobank Ghana Limited and Accion International has disbursed amount to the tune of $15 million to over 36,000 borrowers in Micro, Small and Medium Enterprises (MSMEs) sector in the country, since the institution was set up barely six months ago. Frances Adu-Mantey, the Managing Director of EB-Accion disclosed this to Business Week in Accra last week during the official opening of Accion Hub headquarters in Africa. The institution’s current portfolio stands at GH¢4 million. She stated that currently, EB-Accion have over 6100 customers who save with them throughout the four branches of the institution. According to her, in order to improve the services of the institution, Ecobank Share Services center will facilitate the technology aspect of the bank by networking all the branches of EB-Accion. Maria Otero, President and Chief Executive Officer of Accion International said that the center’s staff in Accra will provide supp
Post a Comment
Read more

Amantin & Kasei Community Bank posts impressive growth, with over GH¢1m profit

 Amantin and Kasei Community Bank, at Amantin in the Bono East Region has posted impressive growth in all the performance indicators during 2022 financial year under review. The bank recorded profit after tax of GH¢1,055,662, representing 35.66% more over the 2021 figure of GH¢778.151. This achievement stemmed out of 49.24% gross income growth from GH¢8,143,526 to GH¢12,153,537. Total deposits of the bank went up by 36.20%, changing from GH¢50,959,848 in 2021 to GH¢69,405,591 in 2022. The bank increased loans and advances by 22.15% from GH¢14,128,017 to GH¢17,257,614. Total assets showed an appreciation of 29.32%, amounting to GH¢77,918,288 as against GH¢60,250,693 in the previous year. On the other hand, the bank posted a marginal increase in short term investments portfolio from GH¢24,439,761 to GH¢26,585,698, indicating 8.78% change. The Chairman of Board of Directors, Amantin and Kasei Community Bank, Dr. John Oduro-Boateng, disclosed this during the 18th annual general meeting of
Post a Comment
Read more