GoG to increase domestic debt with Ghs 1.32 billion loan
The domestic composition of the country’s total debt stock is expected to inch up on the back of an additional Ghs 1.32 billion loan to be taken on by government from the domestic debt market.
The new debt to be taken by government in the auction of the 91, 182 and 364 day treasury bills this Friday, September 3, 2021, follows an earlier Ghs 1.17 billion debt taken on by government last Friday, August 27, 2021.
In last Friday’s auction, government missed its target of raising some Ghs 1.64 billion as it was able to mobilize Ghs 1.17 billion falling short of its target by Ghs 436 million (26.5 percent).
Currently, the country’s total debt stock stands at Ghs 332 billion representing 77.1 percent of Gross Domestic Product making the country at risk of high debt distress.
Of the total debt stock, domestic debt accounts for Ghs 170.8 billion with external debt accounting for the remaining Ghs 161.2 billion.
Aside increasing the country’s domestic debt, the auction of the bill come Friday is also expected to increase the overall debt stock of the country.
The short-term debt securities are expected to be auctioned at discount rates between 12 percent and 12.2 percent.
Given government’s failure to meet its target for last Friday’s auction of the 91 and 182-day treasury bills due to a tightening of liquidity on the interbank market, it is uncertain if government will be able achieve its target in the upcoming auction.
Peruse details of auction results below:
Auctresults-1761 (1) by Fuaad Dodoo on Scribd
