Government intends to borrow almost GHC18 billion in 3 months - Report

Government intends to borrow almost GHC18 billion in 3 months - Report

- The government has revealed plans of borrowing GHC17.8 billion between May and August 2020

- GHC15.8 billion out of the amount would be used to rollover or settle maturities while the GHC2.03 billion would be used for government projects

- Ghana’s total public debt increased from GHC228.4 billion in February 2020 to GHC236.1 billion in March 2020

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YEN.com.gh has learned that the government of Ghana intends to borrow GHC17.8 billion between May and August 2020.

Out of the amount, GHC15.8 billion would be used to rollover or settle maturities while the remaining GHC2.03 billion would be used for government projects.

It has been gathered that about GHC8.9 billion would be raised from the issuance of a 91-Day Treasury Bill.

READ ALSO: World Bank and IMF raise concerns about Ghana's public debt stock

Per a classfmonline.com report, GHC1.85 billion and GHC1.75 billion are expected to be raised from the issuance of the 1-Year Note and 182-Day Treasury bill respectively.

The government revealed that it intends to build benchmark bonds through the issuance of the instruments.

According to a release, it noted that “it is our expectation that this 2020 June to August calendar meets the requirements of market participants. We assure all stakeholders and the general public that we 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 showed that Ghana’s total public debt increased from GHc228.4 billion in February 2020 to GHc236.1 billion in March 2020, which is about 59.3% of Gross Domestic Product (GDP).

The external debt component was US$22.9 billion (GHC124.8 billion), representing 31.4% of the total debt and the domestic debt component was GHC111.3 billion, representing 28% of GDP.

In other news, a report from the Bank of Ghana (BoG) showed that Ghana’s debt stock increased by GHC16.9 billion between January and March 2020.

The 2020 Quarter 1 results were part of a Summary of Economic and Financial Data released by the Central Bank.

The Report shows that Ghana's total debt stock as of March 2020 was GHC236.1 billion, which is 59.3% of the Gross Domestic Product (GDP).

READ ALSO: Akufo-Addo's government recorded the lowest debt accumulation in 10 years - Bawumia

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