Parliament Approves Another $1bn Eurobond

Parliament Approves Another $1bn Eurobond

Ghana’s Parliament has approved another $1 billion Eurobond.

It comes on the back of the minority in the House’s attempt to vote against the move.

The contentious bond was approved through a voice vote after an attempt to get the money approved Tuesday night was fiercely confronted by the minority who voted 67-66 against the deal.

But the Speaker rule against the vote because the number in the House did not meet the required quota.

Government has said $750 million out of the money will be used to service exiting bonds whose repayment are due.

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Kwaku Kwarteng, Obuasi West MP said on Joy FM that the Minority’s position remains the same - they are not in support of the motion.

The Obuasi West MP also said ballooning interest payments on existing loans is another problem the current administration is leaving to posterity.

The country is expected to pay 10.5 billion Ghana cedis in interest payment on existing loans by 2016, he revealed.

A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued.

Also called external bond; "external bonds which, strictly, are neither Eurobonds nor foreign bonds would also include: foreign currency denominated domestic bonds. . ."

It can be categorised according to the currency in which it is issued. London is one of the centers of the Eurobond market, with Luxembourg being the primary listing center for these instruments. Eurobonds may be traded throughout the world.


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