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

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 .

Comments

US-Based Doctor Supports Weija Leprosarium, Underprivileged Children In Ankaase With Cash & Food Items

In a remarkable display of philanthropy, US-based medical practitioner, Dr. Kofi Kyei Sarfo, and the Sarfo family have made significant donations to support vulnerable communities in Ghana. During his visit to Ghana for the Christmas and New Year festivities, Dr. Sarfo and his family donated assorted food items and $5,000 to the Weija Leprosarium in Accra. This generous act aims to improve the lives of the inmates and support the tireless efforts of Rev. Father Andrew Campbell, founder of the Lepers Aid Committee. The donation to the Weija Leprosarium is a testament to Dr. Sarfo's commitment to giving back to his community. He praised Rev. Father Andrew Campbell for his selfless work in integrating cured lepers into society, emphasizing the need for continued support to ensure the well-being of the inmates. Dr. Sarfo encouraged others to follow in his footsteps, stating that every donation, no matter how small, can make a significant difference in the lives of the inmates. The don...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...

Mfantsiman Girls to Host 65th Speech & Prize-Giving Day

Mfantsiman Girls Senior High School is set to host the 65th Speech and Prize-giving Day and Homecoming from 14th to 16th March at Saltpond in the Central region. This year’s Speech and Prize-giving day is being hosted by the 2000-year group, and over 5000 old girls and students of Mfantsiman Girls are expected to attend the programme. Under the theme, ‘Leveraging New Media Technology to Optimize Girl Child Education,’ the event will emphasize the importance of harnessing technology to address the unique challenges faced by girls in accessing quality education, particularly in marginalized communities. By leveraging new media technology, we can create inclusive, interactive, and engaging learning environments that empower girls to reach their full potential. The theme will also serve as a call to action, encouraging students, educators, and stakeholders to explore innovative ways to integrate technology into girl child education, ultimately driving positive change and promoting a...

Kofi Ahovi

Search This Blog