Government, has exceeded its target of mobilising some Ghs 1,171 million in fresh debt from banks in the issuance of its 91, 182 and 364 days treasury bills on Friday, June 11, 2021.
Readers will recall that norvanreports on Wednesday, June 9 reported that government was going to issue the aforementioned securities with the goal of raising Ghs 1,171 million.
The auction of the 91, 182 and 364 days T-bills on Friday, saw government realise more than its target of Ghs 1,171 million by Ghs 169 million as it accepted all bids made by banks that participated in the auction.
Total bids tendered in by banks amounted to Ghs 1,340 million, indicative of banks ever-increasing appetite for government securities.
Related Story: Government to raise Ghs 1.1 billion in T-bills issuance this Friday
With the exception of the 182 day T-bill, government accepted all bids tendered for the 91 and 364 days T-bills.
Bids tendered in for the 91 and 364 days T-bills issued at a discount rate of 12.1 percent and 13.7 percent were Ghs 664 million and Ghs 539 million respectively.
With regards to the 182 days T-bills, total bids tendered in amounted to Ghs 141 million out of government accepted Ghs 136 million – Ghs 5 million less the bids made by banks.
The 182 days T-bills were issued at a discount rate of 12.3 percent.
Government, come this Friday, June 18, 2021, will once again be looking to raise some Ghs 1,175 million on the domestic debt market with the issuance of its 91 and 182 days T-bills.
With an ever-increasing appetite for government securities which are less risky and easing liquidity on the interbank market, government is expected to once again exceed its target in the issuance of the 91 and 182 days T-bills on Friday.
With increased borrowings on the domestic debt market, the country’s public debt stock is expected to rise with domestic debt as a ratio of government’s total debt stock also expected to increase.
Ghana’s total debt stock at the end of March 2021 was Ghs 304.6 billion, compared with the Ghs 292.7 billion at the end of December 2020.
Of the total debt stock, domestic debt was Ghs 163.6 billion (37.7 percent of GDP), while the external debt was Ghs 141.0 billion (32.5 percent of GDP).
