THE GOVERNMENT’S Treasury Bills sale to raise funds on the domestic treasury market has been undersubscribed by 39.47 per cent.
The figure represents a GH¢463.65 million gap in the financial target despite a further increase in interest rates of short term securities.
Government had targeted GH¢766 million in both the 91-day and 182-day Treasury bills.
This is the second week running that the weekly sale of the short term securities have failed to meet the target, following the fiscal measures announced by the Finance Minister, Ken Ofori-Atta to revive the economy.
According to the auctioning results by the Bank of Ghana, GH¢372.04 million was mobilised from the sale of the 91-day T-bills, whilst GH¢91.61 million was secured from the auctioning of the 182-day Treasury bills.
The interest rates for the short term securities were quoted at 14.84% and 15.45% respectively, higher than that of the previous sale.
Analysts have said it will take some time before investors react to the government’s fiscal measures to keep inflation and exchange rate lower and relatively stable.
There is therefore no cause for alarm as the treasury market is expected to bounce back.
BY Jamila Akweley Okertchiri