Gov’t misses T-Bills auction target by GHS 252m after talks with IMF ends without a deal
Attempt by government to secure some GHS 1.56bn from the auction of the 91 day and 182 day treasury bills on Friday, October 21, has proved unsuccessful.
Government in the said auction, raised some GHS 1.30bn falling behind its auction target by GHS 252m.
Bids tendered for the 91 day bill was GHS 1.14bn with government accepting all bids tendered.
For the 182 day bill, bids tendered amounted to GHS 167m with government once again accepting all bids tendered.
The two short term debt instruments were issued at interest rates of 32.6% and 34.3% respectively.
The inability of government to attain the GHS 1.56bn target can be attributed to government’s inability to secure a deal with the IMF after two week’s of negotiations.
Securing a deal with the IMF would have boosted investor confidence to invest in government’s short term dent instruments.
A statement issued by the Finance Ministry on Friday, October 21, 2022, following negotiations with the IMF stated that, both the IMF and government are committed to the goal of reaching a Staff-Level Agreement on a programme within the shortest possible time.
The Finance Ministry further noted that, a pathway towards the fiscal sustainability of the economy has been extensively discussed with the IMF. It however, failed to give specific details as to what were discussed regarding the fiscal sustainability of the country.
According to the Ministry, negotiations with the IMF for a programme has been far advanced.
Adding that, negotiations will continue with the IMF Mission Team expected in the capital in the next few weeks.
The Ministry in its statement further assured Ghanaians of continuing to work with a “fierce sense of urgency to stabilise the economy and place it back on a firm trajectory of growth.”
“We thank the people of Ghana for their forbearance in what is undoubtedly a troubling and challenging time for our economy,” it added.
