GoG Bills: Gov’t raises GHS 1.3bn in fresh debt
Government has raised some GHS 1,300 million in fresh debt from the domestic market with its issuance of 91, 182 and 364 day treasury bills on Friday, August 5, 2022.
Government in the issuance of the 91 and 364 day T-bills accepted all bids made by banks and insurance companies in the auction.
It however, rejected some GHS 36m from the GHS 268m bids tendered in for the 182 day T-bills.
Bids submitted by banks and insurance companies for the 91 day T-bills amounted to GHS 954 million.
For the 182 day T-bills, bids submitted amounted to GHS 268 million.
The 91, 182 and 364 day T-bills were auctioned at discount rates of 22.1 percent, 24.5 percent and 21.8% respectively.
Prior to the issuance on Friday, government a week earlier – July 29 – had raised some GHS 1,083 million from the auction of the 91 and 182 days T-bills.
Data provided by the Bank of Ghana (BoG) with regards to the auctioning of government’s 91, 182 and 364 days treasury bills, indicates that bids tendered in by banks totaled GHS 1,300 million exceeding government’s target of GHS 1,153 million.
Next week – August 12 – government is once again anticipated to borrow some GHS 1,410 million in the issuance of another 91, 182 and 364 days T-bills.
The short-term security is also anticipated to be issued at a discount rate ranging between 22 and 25 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.
The country’s stock of public debt increased to 78.3 percent of GDP (GHS 393.4 billion) at the end of June 2022, compared with 76.6 percent of GDP (GHS 351.8 billion) at the end of December 2021.
Of the total debt stock, domestic debt was GHS 190.1 billion (37.8 percent of GDP), while the external debt was GHS 203.4 billion (40.5 percent of GDP).
BOG Notice No. 64 FMD T Bills Auctresults 1810 5th Aug 2022 by Fuaad Dodoo on Scribd
