Government, will this Friday, June 11, 2021, raise some Ghs 1,171 million in the issuance of 91, 182 and 364 days treasury bills.
Already, government, in the space of one week has borrowed in excess of Ghs 3 billion through the issuance of 91, 182 and 364 days treasury bills.
The Ghs 1,171 million to be raised this Friday will be an additional debt taken on by government.
Per data provided by the Bank of Ghana (BoG) with regards to the auctioning of government’s 91, 182 and 364 days treasury bills, total bids tendered in by banks on May 28, 2021, totaled Ghs 1,852 million out of which government accepted Ghs 1,817 million – this is the first part of the Ghs 3 billion borrowed in a week.
Government, on the following week, June 4, 2021, accepted all bids tendered in for the 91, 182 and 364 days treasury bills. The realised amount was Ghs 1,241 million – the second part of the Ghs 3 billion borrowed – which was marginally below government’s target of Ghs 1,281 million.
A total of Ghs 1,142 million and Ghs 99 million in bids were tendered for the 91 day and 182 day T-bills respectively.
The bills were both issued at a discounted rate of 12.4 percent.
The amount to be raised by government will be used to cater for its short-term financing needs.
Government’s target to raise the Ghs 1,171 million on the debt market through the issuance of 91, 182 and 364 days T-bills is also expected to be issued at a discounted rate of 12.4 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).