Public Debt: Government To Raise GH¢4.59 Billion From Domestic Market In Next Three Months

Public Debt: Government To Raise GH¢4.59 Billion From Domestic Market In Next Three Months

  • The Finance Minister, Ken Ofori-Atta, plans to borrow more from the domestic market in the next three months
  • Between April and June this year, the government will borrow GH¢4.59 billion from treasury bills and other instruments
  • The GH¢4.59 billion that government intends to borrow is more than the GH¢344.5 billion it borrowed in the first quarter of this year

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The Finance Ministry has indicated it will borrow GH¢4.59 billion in new loans from April to June, that is in the second quarter, to finance some projects in the 2022 budget.

In a statement issued by the Treasury and Debt Management Division of the Ministry of Finance, the government intends to raise this amount of money from the domestic market.

Finance Minister, Ken Ofori-Atta
The Finance Minister, Ken Ofori-Atta, has been criticised for excessive borrowing. Source: Instagram/@fillaboyzdotcom
Source: UGC

The statement explained that the funds wll be realised through the following financial instruments:

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1. The 91-day and 182-day will be issued weekly;

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2. The 364-day bill will be issued bi-weekly also through the primary auction, with settlement being the transaction date plus one working day;

3. Securities of 2-year up to 6-year will be issued through the book-building method by the Bond Market Specialists (BMS); and

4. Tap-ins/reopening of existing instruments depending on market conditions.

“Government plans to issue a gross amount of GH¢24,696.00 million, of which GHȼ20,102.05 million is to rollover maturities.
The remaining GH¢4,593.05 million is fresh issuance to meet Government’s financing requirements,” the Finance Ministry said in the Issuance Calendar.

The money government plans to borrow in the next quarter is higher than the GH¢3.78 billion it borrowed in the previous quarter, January to March 2022.

According to the Bank of Ghana, the country’s public debt stock rose from GH¢344.5 billion in November 2021 to GH¢351.8 billion in December 2021.

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Ghana’s debt-to-GDP ratio stands at 80.1% as of March 2022.

Ghana's public debt hits GH¢304.6billion as it rises by GH¢13billion

In March 2021, Ghana’s public debt stock hit GH¢304.6 billion as it rose by GH¢13 billion, the latest Bank of Ghana (BoG) Summary of Economic and Financial Data has revealed.

This is equivalent to 70.2% of Gross Domestic Product (GDP), lower than the 76.1% registered in December 2020.

According to a report filed by Joy News, the fall in debt to GDP ratio is probably due to the expansion in the size of the economy, despite the impact of the COVID-19 pandemic on the economy.

Source: YEN.com.gh

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