• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Prof Lord Mensah hints at possible re-structuring of T-Bills

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
1
2.4k
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Prof Lord Mensah hints at possible re-structuring of T-Bills

Economist and Finance Lecturer at the University of Ghana Business School, Professor Lord Mensah, has sounded the alarm on Ghana’s persistently high-interest rates on treasury bills, hinting at a potential restructuring by the government if necessary measures are not taken to alleviate the situation.

Professor Mensah’s remarks came in the wake of the government’s unsuccessful attempt to significantly reduce interest rates on domestic bonds through its first round of debt restructuring.

Highlighting the current interest rate landscape, Professor Mensah pointed out that while bond interest rates hover around 8% to 10%, treasury bills yield an exorbitant 25%. This stark disparity, coupled with a downward-sloping yield curve signaling an ailing economy, has raised concerns about the efficacy of the recent restructuring efforts.

During a thought-provoking NorvanReports’ and Economic Governance Platform Twitter Space Conversation titled “Restructuring Of Domestic Bonds, Where Do We Go From Here,” Professor Mensah intimated that if the government fails to address the issue of high-interest rates, particularly on short-term debt securities, a second round of debt restructuring is likely to occur, with the treasury bills market as the prime target.

Already, the Government is looking to re-structure some $2.7bn in pension funds held by members of the country’s organised labour unions.

Drawing attention to the upcoming 2023 mid-year budget review, Professor Mensah urged the government to seize this opportunity to prioritize interest rate reduction on its debt securities. Failure to address the matter in the budget review, he cautioned, could have grave consequences and potentially necessitate a restructuring of treasury bills.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

“If in the mid-year budget Government doesn’t say it will reduce interest rates then we are heading for doom and that may lead to a re-structuring in T-Bills, it has been done before and Ghana won’t be the first to do that,” he posited.

Despite the substantial interest rate payments involved, treasury bills remain the sole source of financing for the government, exempted from the domestic restructuring decisions taken by the government.

The observations made by Professor Lord Mensah underscore the pressing need for the government to tackle the issue of high-interest rates on its debt securities. The potential restructuring of treasury bills reflects the gravity of the situation and the imperative of implementing measures to stimulate economic growth and restore investor confidence.

The mid-year budget review assumes heightened significance as it represents a critical juncture for the government to outline its strategies for interest rate reduction and the cultivation of a more favorable yield curve.

As stakeholders closely monitor the country’s economic landscape, addressing the concerns raised by Professor Mensah becomes paramount. The ability of the government to navigate these challenges and instill confidence in the economy will play a decisive role in shaping Ghana’s financial future.

Continue Reading
Tags: Prof Lord MensahProf Lord Mensah hints at possible re-structuring of T-BillsT-bills

Comments 1

  1. Danso says:
    2 years ago

    A very pessimistic analysis. It’s easy making gloomy analysis from the sidelines. Ghana, would survive, despite your doomsday projections!

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.