GH¢22.7bn to be borrowed by government within next 3 months – Finance Ministry
- Government of Ghana will borrow an amount of ¢22.7 billion within the next three months.
- GH¢19 billion out of the borrowed amount will, be used to settle principal and interest of existing loans
- The remaining GH¢3.05 billion, which will be in fresh issuance will be used to finance government projects
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Information reaching YEN.com.gh indicates that the government of Ghana will borrow an amount of ¢22.7 billion within the next three months.
According to a JoyNews report, the amount is going to be borrowed beginning this month.
Per the Bank of Ghana issuance calendar, ¢19 billion out of the borrowed amount will, be used to settle principal and interest of existing loans.
The remaining GH¢3.05 billion, which will be in fresh issuance will be used to finance government projects.
Out of the total amount to be raised, ¢9.2 billion which is the highest amount, will be issued via a 91-day Treasury bill, the calendar shows.
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Some ¢287 million which is the lowest amount to be raised will be issued through a 20-year bond. The 20-year bond will be issued in November.
The Finance Ministry has stated that the 91-day and 182-day Treasury bills will be issued every week, whiles the one year Treasury note will be issued every fortnight.
This will, however, be done through the primary auction with settlement being the transaction date plus one working day. Securities of two-year up to seven-year will, however, be issued through the book-building method.
The additional ¢3 billion will add to government’s total debt of ¢255 billion, about $45 billion as of the end of June.
READ ALSO: Court throws out MTN's case against NCA
In other news, an Accra High Court on Tuesday, September 1, 2020, dismissed an application by MTN seeking to quash the directive of the National Communication Authority to classify it as a significant market player in the telecommunications industry.
The court, in a 33-page ruling, dismissed the case while awarding a cost of GHc10,000 against MTN.
Citinewsroom.com reports that by the decision of the court presided over by Justice Samuel Asiedu, the NCA can now take measures to promote competition to protect the interest of other mobile service operators and consumers.
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Source: YEN.com.gh
