Government will borrow GH¢4.9 billion through treasury bills, notes and bonds this April,2016.
Of this amount 2 billion cedis will be borrowed through 91-Day T/Bill, 1.7 billion cedis through 182-Day T/Bill, 270 million cedis in 1-Year Note, 450 million cedis in 2- year note and 500 million cedis in 3 year fixed rate bond.
A statement from the Bank of Ghana revealed that the 91-day and 182-day bills will be issued weekly.
While the 1-Year Note will be issued at the primary auction every 2 weeks (biweekly) in an average amount of GH¢50.00 million every auction.
Additionally on 14th April, 2016 an amount of GH¢170.00 million will be issued through tapping/reopening of the 3-Year bond maturing 24th April, 2017 and this will be available to resident and non-resident investors.
The 2-Year Note will be issued through the primary auction once in the month in an amount of GH¢250.00 million.
Additional an amount of GH¢200.00 million will be issued on 26th April 2016 through tapping/reopening of the 3-Year bond maturing 23rd April, 2018 and will be available to resident and non-resident investors.
The 3-Year Fixed Rate Bonds will be issued through the Book-Building process.
There are fears government is likely to overspend in 2016, being an election year.
Early this week Economist, Professor Godfred Bokpin told Citi Business News that Ghana faces a threat of overspending its budget this year.
According to him, factors leading to overspending in election years are still persisting which will make it difficult for the government to stay within its budget.
Data from the Bank of Ghana show that as at December 2015, Ghana’s total debt stood at $25.6 billion.
According to the Bank of Ghana’s summary of macroeconomic and financial data released on March, 18. 2016 as at December 2015 Ghana’s public debt was 25.6 billion dollars and in cedi terms 97.2 billion cedis.
Per the BoG’s data Ghana’s debt hit 97.2 billion cedis in December 2015 up from the 96.9 billion cedis recorded in November of the same year.
In October, 2015 the total debt was 96.3 billion cedis while in September 2015, it was at 91.6 billion cedis and in August of that same year 94.8 billion cedis.
Per the figures as at December 2015 the total debt stock of 97.2 billion cedis or 25.6 billion dollars cumulated to 72.9 percent of GDP.
Of this figure the external debt hit 57.8 billion cedis in December, 2015 which is 43.3 percent of GDP.
While in February domestic debt was 39.4 billion cedis making up 29.5 percent of GDP.
In January 2016, domestic debt went up to 40.6 billion cedis making up 25.6 percent of GDP, it however dropped to 39.9 percent in February 2016 making up 25.2 percent of GDP.
Meanwhile government has also begun moves to meet investors to showcase the country’s growing economic prospects as it prepares to likely launch its next Eurobond.
The meeting which will have the Finance Minister leading the delegation is a non – deal road show.
Parliament has given government the nod to raise more funds in the form of bonds on the international market to support the country’s growing infrastructural needs and also repay part of the its maturing debts.
By: Vivian Kai Lokko/citifmonline.com/Ghana