Skip to main content

Gov’t adds GHS2.2bn fresh debt to stock


The Central Government, through the Ministry of Finance (MoF), has taken on fresh debt amounting to some GHS 2.22bn through the issuance of its 91 and 182 day treasury bills.

The short-term debt instruments auctioned on Friday, September 9, and to be issued on Monday, September 12, exceeded government’s initial target of GHS 1.68bn.

Bids tendered for the 91-day T-bill amounted to GHS 1,427m of which the government accepted GHS 1,410m rejecting some GHS 17m bids tendered by the various banks, insurance firms and other institutional investors.

For the 182 day, bids tendered amounted to GHS 860m of which the Central Government accepted GHS 815m rejecting bids to the tune of GHS 45m.

Interest rates on the auctioned 91 day and 182-day T-Bills were 29.8% and 31.1%.

For the 182-day T-bill, interest rate on the short-term debt instrument is almost the same as the country’s headline inflation which stands at 31.7% as at July 2022.

The Ghana Statistical Service (GSS) is expected to announce the country’s headline inflation for the month of August in the coming days.

Should the country record a disinflation (decline in inflation rate) for the month of August, the 31.1% interest rate on the 182-day T-bill (and possibly for the 91-day T-bill), will result in positive real returns on the debt security.

The GHS 2.22bn debt auctioned last Friday by the government, adds to its domestic debt stock.

With increased borrowings on the domestic debt market, the country’s public debt stock is expected to rise with domestic debt as a ratio of government’s total debt stock also expected to increase.

The country’s stock of public debt increased to 78.3 percent of GDP (GHS 393.4 billion) at the end of June 2022, compared with 76.6 percent of GDP (GHS 351.8 billion) at the end of December 2021.

Of the total debt stock, domestic debt was GHS 190.1 billion (37.8 percent of GDP), while the external debt was GHS 203.4 billion (40.5 percent of GDP).

Meanwhile, the government, coming this Friday, September 15, will once again be looking to issue the 91, 182 and 364 day T-bills with the hope of raising some GHS 1.77bn in new debt.

Labels:

Comments

Post a Comment

Popular posts from this blog

Zoomlion Advocates Community & Gender inclusive waste management for Climate Action at COP 29

 Africa's waste management giant, Zoomlion Ghana Limited has advocated for an integrated approach to waste management that considers the interest of community members, women and vulnerable groups. James Deku, a Communications Officer of Zoomlion Ghana Limited made this call at the 29th session of the Conference Of Parties (COP 29) of the United Nations Framework Convention for Climate Change (UNFCCC) at Azerbaijan, Baku whiles speaking on the topic "Community-Driven and Gender Inclusive approaches to waste management for Climate Action ". He said the waste sector is a major contributor of methane emissions which is a potent greenhouse gas causing climate change hence the need to manage waste in a manner that considers the interest of all stakeholders. Zoomlion's waste management model is designed and operated in a manner that considers the interest of all stakeholders. Through a Public Private Partnership (PPP) model, local authorities engage community members in clea
Post a Comment
Read more

Anglogold Ashanti Obuasi Mine tops 2024 Sustainability & Social Investment Awards

 AngloGold Ashanti Obuasi Mine has confirmed its status as sustainability champions by sweeping nine awards, the most won by a company at the 2024 Sustainability & Social Investment Awards (SSI) held at Movenpick Ambassador Hotel in Accra. The feat comes on the heels of a dominant performance in last year's event where AngloGold Ashanti Obuasi Mine swept seven awards. The SSI Awards organised by Ianmatsun Global Services recognizes the most outstanding sustainability, Corporate Social Responsibility (CSR), Environmental, social, and governance (ESG) initiatives in the country and beyond as well as the best teams and individuals who brought them to life. This year's event, which was the 8th edition, was under the theme "Climate Action Now: Accelerating Decarbonization and Building Resilience". The awards won by AngloGold Ashanti on the night include SSI Company of the Year, Best Company in Women Empowerment (project), SSI Company of the Year ( Environment), Best Co
Post a Comment
Read more

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican
16 comments
Read more