Government, come this Friday, July 23, 2021, will seek to raise some Ghs 1,019 million through the issuance of its 91, 182 and 364 days treasury bills.
Government, in just one week has already borrowed in excess of Ghs 3.24 billion in the issuance of 91, 182 and 364 days treasury bills.
The Ghs 1,019 million to be raised on July 23 will be an additional debt to be taken on by government.
Per data provided by the Central Bank with regards to the auctioning of government’s 91, 182 and 364 days treasury bills, total bids tendered in by banks on July 9, 2021, totaled Ghs 1,550 million out of which government accepted Ghs 1,526 million rejecting Ghs 24 million.
Government, on the following week, July 16, accepted all bids tendered in for the 91 and 182 day treasury bills as well as the 10 year fixed income bond.
The realised amount from the auction was Ghs 1,715 million above government’s target of Ghs 1,281 million – exceeded target by Ghs 434 million.
A total of Ghs 745 million and Ghs 150 million in bids were tendered for the 91 day and 182 day T-bills respectively.
For the 10 year fixed income bond, a total of Ghs 820 million bids was tendered in by participants of the auction. Government accepted all bids tendered in for the 10 year bond.
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 1,019 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 12.4 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.
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.
