Government has raised some Ghs 1,175 million in fresh debt from the domestic market with its issuance of a 91 and 182 day treasury bills on Friday, June 18, 2021.
Government in the issuance of the 91 day and 182 day T-bills accepted all bids made by banks and insurance companies in the auction.
Bids submitted by banks and insurance companies for the 91 day T-bills amounted to Ghs 1,048 million.
For the 182 day T-bills, bids submitted amounted to Ghs 175 million.
The 91 day and 182 day T-bills were auctioned at discount rates of 12.3 percent and 12.6 percent respectively.
Prior to the issuance on Friday, government a week earlier – June 11 – had raised some Ghs 1,340 million from the auction of 91, 182 and 364 days T-bills.
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Data provided by the Bank of Ghana (BoG) with regards to the auctioning of government’s 91, 182 and 364 days treasury bills on June 11, indicates that bids tendered in by banks totaled Ghs 1,345 million out of which government accepted Ghs 1,340 million, Ghs 5 million less the total amount tendered in.
Next week – June 25 – government is once again anticipated to borrow some Ghs 1,216 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 12.3 and 12.6 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.
Ghana’s total debt stock at the end of March 2021 was Ghs 304.6 billion, compared with the Ghs 292.7 billion at the end of December 2020.
Of the total debt stock, domestic debt was Ghs 163.6 billion (37.7 percent of GDP), while the external debt was Ghs 141.0 billion (32.5 percent of GDP).
