Government, will this Friday, July 9, 2021, raise some Ghs 1,305 million in the issuance of its 91, 182 and 364 days treasury bills.
Already, government, in the space of one week has borrowed in excess of Ghs 1,899 million through the issuance of 91, 182 and 364 days treasury bills.
The Ghs 1,305 million to be raised this Friday will be an additional debt taken on by government.
Per data provided by the Bank of Ghana (BoG) with regards to the auctioning of government’s 91, 182 and 364 days treasury bills, total bids tendered in by banks on June 25, 2021, totaled Ghs 1,525 million out of which government accepted Ghs 1,296 million – this is the first part of the Ghs 1,899 million borrowed in a week.
Government, on the following week, July 2, 2021, accepted all bids tendered in for the 91 and 182 day treasury bills. The realised amount was Ghs 735 million below government’s target of Ghs 1,178 million – the second part of the Ghs 1,899 million borrowed by government.
A total of Ghs 603 million and Ghs 132 million in bids were tendered for the 91 day and 182 day T-bills respectively.
The amount to be raised by government will be used to cater for its short-term financing needs.
Government’s target to raise the Ghs 1,305 million on the debt market through the issuance of 91, 182 and 364 days T-bills is expected to be issued at a discounted rate of 12.2 percent.
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.
Read This: Naira falls at official market despite a significant rise in dollar supply by 128%
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).
Issuance of the 91,182 and 364 day T-bills forms part of plans by government to borrow some Ghs 21.9 billion from the domestic market from June to August this year.
Borrowings made by government within the specified period will largely be made through the weekly and bi-weekly issuance of 91, 182 and 364 days T-bills.
In addition to the T-bills issuance will be the issuance of 2-year and up to 10-year bonds through the book-building method.
According to the Finance Ministry, Ghs 19,864.43 million of the gross amount of Ghs 21,960.00 million to be borrowed will be used to roll over maturities, with the remaining Ghs 2,095.57 million used to meet government’s short-term financing requirements.
