"Short-term debt securities oversubscribed by GHS 482m; reflecting strong investor demand"

" Short-term debt securities oversubscribed by GHS 482m; reflecting strong investor demand \r\n\r\nThe Government of Ghana\u2019s recent issuance of short-term debt securities has demonstrated its commitment to managing the country\u2019s financing needs and meeting its budgetary requirements. The oversubscription of the 91-day and 182-day T-Bills by GHS 482m, with total bids tendered by primary dealers amounting to GHS 2,067m, reflects strong investor demand for Ghana\u2019s debt securities.\r\n\r\nDespite the high interest rates offered by the government for these short-term securities, returns on these treasury bills continue to be negative, primarily due to the country\u2019s persistently high inflation rate, which stood at 45% at the end of March 2023. However, the government\u2019s ability to accept all bids tendered for these two securities, with interest rates ranging from 19.9% for the 91-day T-Bill to 22.7% for the 182-day T-Bill, demonstrates the confidence of investors in the Ghanaian economy.\r\n\r\nThe government\u2019s upcoming issuance of 91-day, 182-day, and 364-day T-Bills on May 5, 2023, is part of its strategy to secure GHS 1,834m in fresh funding. This is a critical move in the country\u2019s ongoing efforts to manage its financing needs and meet its budgetary requirements. It is also an important step towards addressing the country\u2019s persistently high inflation rate and reducing the fiscal deficit, which stands at 11% of GDP.\r\n\r\nDespite the country\u2019s ongoing economic challenges, including high inflation, a large fiscal deficit, and a volatile currency, Ghana remains an attractive destination for investors. This is evidenced by the oversubscription of the recent debt securities issuance, which highlights investors\u2019 confidence in the economy.\r\n\r\nThe government\u2019s efforts to address these issues, including through fiscal consolidation measures and support from international financial institutions, have helped maintain investor interest in the country\u2019s debt securities. The strength of Ghana\u2019s primary dealer network, which facilitates the issuance and trading of government securities in the domestic market, has also played a crucial role in ensuring the liquidity and stability of Ghana\u2019s debt market.\r\n\r\nGoing forward, the government will need to continue its efforts to manage its fiscal and economic challenges effectively. This will require ongoing structural reforms and prudent macroeconomic policies, which will be critical to restoring investor confidence in Ghana\u2019s debt securities and sustaining the country\u2019s long-term economic growth and development.\r\n\r\nGhana\u2019s recent issuance of short-term debt securities has seen oversubscription, indicating strong investor demand. The government\u2019s ongoing efforts to manage the country\u2019s financing needs and meet its budgetary requirements have been critical in maintaining investor interest in the country\u2019s debt securities. Despite ongoing economic challenges, Ghana remains an attractive destination for investors, and the government\u2019s continued efforts to address these issues will be crucial to sustaining the country\u2019s long-term economic growth and development."

"Short-term debt securities oversubscribed by GHS 482m; reflecting strong investor demand"

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