No Result
View All Result
Tuesday, June 28, 2022
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Leverage crises to improve fortunes of continent – Ofosu-Dorte

    African Finance Ministers tasked to allocate more resources into education sector

    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Employ targeted-subsidized systems to check macro-economic challenges – Prof. Quartey

    Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

    Cedi Summit comes off today at Alisa Hotel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Leverage crises to improve fortunes of continent – Ofosu-Dorte

    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Cedi Summit comes off today at Alisa Hotel

    BoG’s supply of dollars to BDCs drops from 85% to 21% within 3 months – CBOD

    Societe Generale Ghana launches new ‘boafo loan product’ assist MSMEs

    CBOD calls for a more structured supply of Forex for petroleum products

  • TECHNOLOGY

    BoG, CSA deepen collaboration to fight cyber threats

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

    ADB pioneers in global remittance services in Ghana [ARTICLE]

    Introduction of GhanaPay complements efforts to capture the unbanked into digital payments ecosystem – Veep

    #CitiBusinessFestival: How the country can take advantage of the “Ghana Opportunity”

    Chamber of Telecommunications calls for more investment into Technology to improve livelihoods

    Citi Business Festival: Address lack of financial data challenges using MoMo – Rufai Abdul Majeed

    Citi Business Festival: Acquiring digital skills key to securing employment – Maximus Ametorgoh

    Bank of Ghana commences piloting of digital currency in Sefwi Asafo

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

    Modern airline tickets design with flight time and passenger name. Plane tickets vector pictogram. Airline boarding pass template. Vector illustration. The concept of air transportation

    Ticket prices to rise following B.A schedule change on Accra-London-Accra route

    Bawumia calls for more AfDB support as African economies battle global challenges

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Take control of financing on the continent – Ofori-Atta to AfDB

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Leverage crises to improve fortunes of continent – Ofosu-Dorte

    African Finance Ministers tasked to allocate more resources into education sector

    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Employ targeted-subsidized systems to check macro-economic challenges – Prof. Quartey

    Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

    Cedi Summit comes off today at Alisa Hotel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Leverage crises to improve fortunes of continent – Ofosu-Dorte

    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Cedi Summit comes off today at Alisa Hotel

    BoG’s supply of dollars to BDCs drops from 85% to 21% within 3 months – CBOD

    Societe Generale Ghana launches new ‘boafo loan product’ assist MSMEs

    CBOD calls for a more structured supply of Forex for petroleum products

  • TECHNOLOGY

    BoG, CSA deepen collaboration to fight cyber threats

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

    ADB pioneers in global remittance services in Ghana [ARTICLE]

    Introduction of GhanaPay complements efforts to capture the unbanked into digital payments ecosystem – Veep

    #CitiBusinessFestival: How the country can take advantage of the “Ghana Opportunity”

    Chamber of Telecommunications calls for more investment into Technology to improve livelihoods

    Citi Business Festival: Address lack of financial data challenges using MoMo – Rufai Abdul Majeed

    Citi Business Festival: Acquiring digital skills key to securing employment – Maximus Ametorgoh

    Bank of Ghana commences piloting of digital currency in Sefwi Asafo

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

    Modern airline tickets design with flight time and passenger name. Plane tickets vector pictogram. Airline boarding pass template. Vector illustration. The concept of air transportation

    Ticket prices to rise following B.A schedule change on Accra-London-Accra route

    Bawumia calls for more AfDB support as African economies battle global challenges

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Take control of financing on the continent – Ofori-Atta to AfDB

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Govt’s ‘undetermined’ bond a case of emergency-Economist

bycitibusinessnews
June 22, 2016
in Government, Top Stories
Finance Minister, Mr. Seth Terkper

Finance Minister, Mr. Seth Terkper

Share on FacebookShare on TwitterShare on Whatsapp

Government’s decision to return to the domestic bonds market barely a month after it failed to raise 500 million cedis to restructure its debt and retire maturing loans may be due to contingency developments, Economist Dr. Ebo Tuckson has suggested.

The Bank of Ghana (BoG) announced on June, 21 2016, that, it will raise an undetermined fund through the domestic bonds market at a minimum bid of 50,000 cedis with a face value of one cedi.

Even though this is not the first time government has hit the bonds market this year, its inability to raise the exact size of the bond has triggered some concerns on how Ghana’s debt stabilization strategy can be sustained.

ADVERTISEMENT

On May, 26, 2016, government was able to raise GH¢341 million but accepted only GH¢303 million after it published a 500 million cedi bond.
Speaking to Citi Business News in an interview, Dr. Tuckson maintained that government’s desperation to raise the funds clearly shows that it is in an emergency situation.

According to him, with a shortfall in retiring its debts, government must go the extra mile to fulfill its debt obligation since it will have implications for the economy.

“The normal bonds that are announced with the size are the ones government has planned for the year. I suspect that this one might be an emergency move to raise money to retire the loans,” he said.

He was of the opinion that the Ministry of Finance would have declared the size of the bond if it had been captured in the budget.

Touching on the impact on Ghana’s debt stock, Dr. Tuckson stated that the increasing debt stock is harming the economy.

“When it comes to sustaining the debt stock, we are not on track. Unfortunately we are being told that we are borrowing to restructure our debts. All these show a sign of distress,” he said.

Questioning the rationale behind government’s bonds, Dr. Tuckson insisted that if the bonds have been prudently invested the proceeds could have been used to refinance them as they mature.

Government’s domestic bonds issued in 2016

This is not the first time government has attempted to raise funds through the domestic bonds market in 2016.

On January 7, 2016, government failed to obtain a similar amount of 500 million cedis bond it issued to restructure its debt and maturity settlement.

Total bids received at the time amounted to 426.23 million cedis.

In May 2016, government accepted 1.123 billion cedis (294 millon dollars) for a three-year domestic bond with a yield of 24.5 percent.

Proceeds of the bond, which was open to offshore investors and sold through a book-builder’s system was expected to be used to finance the 2016 budget.

Total bids received at the time amounted to 1.13 billion cedis with 71 percent coming from offshore investors.

Government’s debt stock

Figures released by the BoG on March, 18,2016 indicated 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, Ghana’s public debt as at December 2015 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.

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.

–

By: Lawrence Segbefia/citibusinessnews.com/Ghana

 

 

 

Related Posts

Top Stories

Leverage crises to improve fortunes of continent – Ofosu-Dorte

byNerteley Nettey

Senior partner at AB and David law firm, David Ofosu-Dorte is admonishing African governments and businesses to leverage crises to...

Read more

African Finance Ministers tasked to allocate more resources into education sector

Unilever Ghana PLC remains upbeat about future growth prospects

Citi Business Festival enters final week; forum on agribusiness comes off today

BoG must enforce regulations on informal forex trading – Prof. Quartey

Employ targeted-subsidized systems to check macro-economic challenges – Prof. Quartey

Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

Next Post

Kenya to feel the pain of Britain’s possible EU exit

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.