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GOV’T TO BORROW GHS17.8BN IN 3 MONTHS

Business,

The government of Ghana is seeking to borrow GHS17.8 billion between May and August 2020.
According to the Issuance Calendar, GHS15.8 billion will be used to rollover or settle maturities while the remaining GHS2.03 billion will be used as fresh issuance to finance government projects.

A total of GHS1.85 billion and GHS1.75 billion are expected to be raised from the issuance of the 1-Year Note and 182-Day Treasury bill.

GHS1 billion, GHS800 million and GHS287.87 million are expected to be issued in July and August 2020, respectively.

The issuance of the 20-year bond as a shelf offering will be re-opened based on investors’ request and on market conditions.

The government said it is their expectation that the 2020 June to August Calendar meets the requirements of market participants and have further assured all stakeholders and the general public that they will continue to strive for greater predictability and transparency in the domestic bond market.

The March 2020 Bank of Ghana Summary of Economic and Financial Data revealed that Ghana’s total public debt increased by US$300 million in March 2020 to US$43.4 billion.

The debt was more than half the total size of the country’s economy.

In cedi terms, the nation’s debt jumped from GHS228.4 billion in February 2020 to GHS236.1 billion in March 2020 which is about 59.3% of Gross Domestic Product.

The external debt component was US$22.9 billion which isGHS124.8 billion representing 31.4% of the total debt.

The domestic debt component was GHS111.3 billion, representing 28% of GDP.

Interest payments are expected to hit GHS23 billion by the end of December 2020.

Story by:Naa Anyema Collison

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